AI’s Rally Is Disguising a Massive Slump in Tech Stocks
Stronger-than-expected profits and upbeat forecasts from Nvidia and Salesforce eased AI worries and pushed the Nasdaq and S&P 500 higher, analysts said.
- On Thursday, Nvidia shares climbed 9% and Salesforce jumped 21.6 per cent after both reported strong earnings that exceeded analyst expectations, lifting Wall Street and the tech-heavy Nasdaq higher.
- Relentless demand for artificial intelligence technology drives the rally, positioning companies making the "picks and shovels" of AI infrastructure to reap massive benefits. Semiconductor firms like Intel continue to surge, cementing their role in the AI buildout.
- Chip stocks account for 37% of market value gains this year, while chipmaker Micron Technology is up 220% across the past year. Chip and tech hardware stocks comprise nearly 45% of the Nasdaq 100.
- Beyond tech, Dollar General and Dollar Tree breezed past Wall Street expectations for the second quarter, raising profit forecasts for the year. These results reflect Americans cutting costs amid stubborn inflation by shopping at discount stores.
- Analysts warn of potential risks ahead, with Matt Maley, chief market strategist at Miller Tabak, advising investors to keep "eyes wide open" about sentiment shifts. If Big Tech spending on AI slows, chipmakers could face trouble, threatening broader market gains.
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Cramer Says the Bears Spent Months Lying About Salesforce and Nvidia. One Earnings Report Just Ended It.
Bears spent months building a case that AI would hollow out Salesforce and eventually topple Nvidia, and then a single earnings night arrived and put both arguments on trial at once.
On the 27th, the three major indices of the New York stock market closed higher in unison. Strong buying sentiment spread across technology stocks as Nvidia, considered a leader in artificial intelligence (AI) semiconductors, released earnings forecasts that far exceeded market expectations. On the New York Stock Exchange, the Dow Jones 30 Industrial Average closed at 53,568.55, up 104.67 points (0.20%) from the previous trading day. Centered on…
Sydney Morning Herald
Australia’s share market ends volatile week higher
The ASX had five wild sessions amid earnings reports, oil price swings and interest rate woes.
Tech stocks lead Wall Street after Nvidia, Salesforce and others say AI is creating big growth - Boston News, Weather, Sports
NEW YORK (AP) — Technology stocks are leading Wall Street on Thursday after Nvidia, Salesforce and others reported even fatter profits for the spring than analysts expected. The S&P 500 added 0.7% and pulled closer to its all-time high set earlier this month. The Dow Jones Industrial Average was up 160 points, or 0.3%, as of 2:01 p.m. Eastern time, and the Nasdaq composite was 1.4% higher. Nvidia was the strongest force pulling the market higher…
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