Semiconductor stocks primarily related to artificial intelligence are led by Nvidia Corp (NASDAQ: NVDA), Advanced Micro Devices, Inc. (NASDAQ:AMD), Intel Corp (NASDAQ:INTC), Broadcom Inc (NASDAQ:AVGO), Taiwan Semiconductor Manufacturing Co (NYSE:TSM), Arm Holdings Plc (NASDAQ:ARM), Qualcomm Inc (NASDAQ:QCOM) shares are trading higher on Thursday in line with Micron Technology, Inc.’s (NASDAQ:MU).
Micron’s optimistic fourth-quarter performance is boosting the sector. AI server company Super Micro Computer, Inc (NASDAQ:SMCI) has also gained momentum.
On Wednesday, Micron reported quarterly revenue of $7.75 billion, up 93%, topping analysts’ consensus of $7.64 billion, driven by strong sales of its data center DRAM and high-bandwidth memory products.
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Positive quarterly results from Nvidia, Broadcom and Micron are testament to the ongoing AI craze as hyperscalers continue to invest in their AI efforts.
Some positive updates that are a testament to the continued AI momentum include Microsoft setting aside $1.3 billion to improve AI infrastructure and skills in Mexico and Taiwan. Semiconductor has secured smartphone chip deals from Alphabet Inc (NASDAQ:GOOG) (NASDAQ:GOOGL) and Apple Inc (NASDAQ:AAPL).
BofA effects Analyst Justin Post also praised the latest collaboration between rival cloud providers Amazon.Com Inc (NASDAQ:AMZN) and Oracle Corp (NYSE:ORCL), which could fuel demand for infrastructure and applications.
The deal with Amazon and the US subsidy of struggling chipmaker Intel also reflect further optimism.
The semiconductor sector also benefited from major rate cuts in the US and China, which are aimed at boosting discretionary spending by capital-intensive companies.
Price promotions: NVDA shares were up 2.51% to $126.62 premarket at last check on Thursday. AMD was up 3.10% to $167.04 and INTC was up 3.70% to $24.41.
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This article What’s Happening to Nvidia, Broadcom, Intel, and Other Chip Stocks on Thursday? originally appeared on Benzinga.com
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