AI stocks rebound as Nvidia struggles weigh on chip leader
A sharp rebound sweeps through AI-related stocks after a volatile stretch driven by the U.S. midterm elections and fresh doubts about the data center buildout. The rally lifts semiconductor, hyperscaler and infrastructure names, but Nvidia remains under pressure after weekend revelations involving Chief Executive Jensen Huang.
Highlights
- Nasdaq 100 surges 3.4% for its second-strongest session of 2024 as investor demand revives across AI-linked equities, including engineering and construction firms.
- Semiconductor sector rebounds as SOX index jumps 6.9%, with Broadcom up 8.8% and Advanced Micro Devices soaring 13.3% after an Oppenheimer upgrade to Outperform.
- Nvidia lags the rally due to uncertainty over CEO Jensen Huang's future following reports of his affair with a woman linked to Chinese intelligence.
Broad rally across the AI trade
As first reported by Axios, investor appetite for AI-linked equities returns forcefully on Monday, pushing the Nasdaq 100 up 3.4%, its biggest daily gain since late March and its second-strongest session of the year.The advance extends across much of the AI ecosystem. Engineering and construction companies, along with suppliers of fiber-optic cables, servers and data storage equipment used in data centers, post strong gains. Neocloud operators that build and lease computing capacity also move higher, while hyperscalers rise led by Meta, which adds 5.1%.
Semiconductor shares also rebound strongly, with the SOX index jumping 6.9%, its best gain since late July. Broadcom climbs 8.8%, marking its strongest day in nearly a year, while Advanced Micro Devices surges 13.3% after Oppenheimer analysts upgrade the stock to Outperform.
Nvidia uncertainty and market outlook
The main exception to the rebound is Nvidia, whose shares remain under strain after weekend revelations from Jensen Huang. Investors are assessing the uncertainty around the chief executive's future after he acknowledges having an affair with a woman suspected of ties to Chinese intelligence.Wall Street's bullish tone helps set up Monday's recovery. Goldman Sachs analysts say stocks are now clearly in oversold territory, while Morgan Stanley's technology team argues the market reaction to the midterm elections is excessive and points to renewed opportunities in AI investment after the vote.
The bounce follows a deep recent selloff in parts of the market, especially chip stocks, where buying weakness has often paid off in recent years, particularly for retail investors. Even so, the latest rally still leaves open whether the move marks the start of a fresh phase of AI enthusiasm or only a temporary rebound in a highly volatile market.
Earlier, we discussed how the Nasdaq 100 rose 1.76% as buyers returned despite AI supply chain concerns.
Latest NVIDIA News
-
Afghanistan
-
Albania
-
Algeria
-
Angola
-
Argentina
-
Armenia
-
Australia
-
Austria
-
Azerbaijan
-
Bahamas
-
Bahrain
-
Bangladesh
-
Belarus
-
Belgium
-
Bolivia
-
Botswana
-
Brazil
-
Brunei
-
Bulgaria
-
Cambodia
-
Cameroon
-
Canada
-
Chile
-
China
-
Colombia
-
Congo
-
Costa Rica
-
Cote d'Ivoire
-
Croatia
-
Cuba
-
Cyprus
-
Czechia
-
DR Congo
-
Denmark
-
Dominican Republic
-
Ecuador
-
Egypt
-
El Salvador
-
Estonia
-
Eswatini
-
Ethiopia
-
Finland
-
France
-
Georgia
-
Germany
-
Ghana
-
Greece
-
Haiti
-
Hong Kong
-
Hungary
-
India
-
Indonesia
-
Iran, Islamic republic
-
Iraq
-
Ireland
-
Israel
-
Italy
-
Jamaica
-
Japan
-
Jordan
-
Kazakhstan
-
Kenya
-
Korea
-
Kuwait
-
Kyrgyzstan
-
Laos
-
Latvia
-
Lebanon
-
Lesotho
-
Libya
-
Lithuania
-
Luxembourg
-
Madagascar
-
Malaysia
-
Malta
-
Mauritius
-
Mexico
-
Moldova
-
Mongolia
-
Montenegro
-
Morocco
-
Mozambique
-
Myanmar
-
Namibia
-
Nepal
-
Netherlands
-
New Zealand
-
Nigeria
-
North Macedonia
-
Norway
-
Oman
-
Pakistan
-
Palestine
-
Panama
-
Papua New Guinea
-
Paraguay
-
Peru
-
Philippines
-
Poland
-
Portugal
-
Puerto Rico
-
Qatar
-
Reunion
-
Romania
-
Rwanda
-
Saudi Arabia
-
Serbia
-
Singapore
-
Slovakia
-
Slovenia
-
Somalia
-
South Africa
-
Spain
-
Sri Lanka
-
Sweden
-
Switzerland
-
Syria
-
Taiwan
-
Tajikistan
-
Tanzania
-
Thailand
-
Trinidad and Tobago
-
Tunisia
-
Turkey
-
UAE
-
Uganda
-
Ukraine
-
United Kingdom
-
United States
-
Uruguay
-
Uzbekistan
-
Venezuela
-
Vietnam
-
Yemen
-
Zambia
-
Zimbabwe
- Forex
- Crypto
