‘AI Bubble’ Concerns Eased as Micron, Intel, AMD Stocks Rally Following Nvidia’s Strong Q3 Results
Chip stocks jump as Nvidia’s powerful earnings boost market confidence.
Wall Street showed renewed optimism for major tech stocks on Thursday as shares of Intel Corp., Advanced Micro Devices Inc. (AMD), and Micron Technology Inc. surged alongside a robust earnings report from Nvidia, a leader in AI technology. Pre-market trading saw AMD shares jump nearly 4.5%, Micron rise by 2.66%, and Intel up 2.27%, reflecting growing investor confidence in the semiconductor industry supported by the AI boom.
Nvidia’s impressive third-quarter earnings overshadowed ongoing "AI bubble" fears, as the company reported a 62% year-on-year increase in revenue to $57 billion and a 65% rise in net income. These strong financials alleviated concerns that AI-related stock valuations might be inflated beyond their fundamentals—a worry that had caused market jitters earlier this year.
Jensen Huang, Nvidia’s CEO, addressed the AI bubble narrative in the post-earnings conference call, stressing Nvidia’s unique position as a comprehensive AI accelerator poised to benefit from every stage of AI development. The company also forecasted fourth-quarter revenue of approximately $65 billion, further signaling sustained demand for AI technologies.
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The rally extended to other chipmakers closely aligned with Nvidia’s business. Micron supplies high-bandwidth memory for Nvidia GPUs, while Nvidia recently acquired a $5 billion stake in Intel, reflecting strategic collaboration even between competitors like AMD and Nvidia. This symbiotic relationship among major technology players boosts sector-wide investor enthusiasm.
Nvidia’s landmark earnings report has not only strengthened faith in AI but is also expected to reinvigorate broader tech markets. With AI-driven innovation accelerating, chipmakers like Intel, AMD, and Micron are well positioned for growth, dispelling earlier doubts about an overhyped AI bubble and setting the stage for a robust industry outlook.
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