- AI chip stocks lead technology shares higher as Nvidia forecasts stronger chip demand and Treasury yields retreat
Technology stocks rallied in the latest session, with semiconductor and AI infrastructure companies leading a broader rebound across the sector. The Nasdaq Composite rose 1.69%, while the S&P 500 gained 1.14%. The Philadelphia Semiconductor Index climbed 3.14%, reflecting strong gains across chipmakers and AI hardware companies.
The move came after technology shares sold off following the Federal Reserve's September rate decision. The 10-year US Treasury yield subsequently fell below 5%, while oil prices also eased, providing additional support for growth-oriented stocks.
Nvidia Leads the AI Chip Trade
NVIDIA Corporation (NVDA) gained 2.54% to $219.34 in the latest session, putting the company among the largest contributors to the technology rebound. Nvidia CEO Jensen Huang added a fresh catalyst to the AI trade by saying the company expects to sell twice as many chips next year as this year. Huang attributed the outlook to accelerating AI investment across industries and countries.
Nvidia's comments come after the company projected roughly 70% revenue growth for fiscal 2028, which would put annual revenue at approximately $673 billion based on the company's outlook and reported calculations. Nvidia remained the world's largest publicly traded company by market capitalization, with its value above $5 trillion.
AMD and Intel Surge
Advanced Micro Devices Inc. (AMD) climbed 6.3% to $545.09, while Intel Corporation (INTC) jumped 7.6% to $108.80. Both stocks were among the strongest major semiconductor performers in the session. The gains extended beyond the two companies. Micron Technology Inc. (MU) rose 5.5% to $977.50, while Marvell Technology Inc. (MRVL) gained 4.8% to $240.76.
The semiconductor rally indicates that investor demand was concentrated in companies tied directly to AI computing, memory and networking infrastructure rather than limited to the largest technology platforms.
Broadcom Gains as AI Infrastructure Demand Continues
Broadcom Inc. (AVGO) advanced 2.29% to $347.30. Broadcom is one of the major semiconductor companies benefiting from demand for AI networking and custom computing infrastructure. The company has also remained one of the largest technology companies by market capitalization, with its value around $1.7 trillion based on the latest available market data.
Oracle Rebounds on AI Cloud Growth
Oracle Corporation (ORCL) gained 5.19% to $150.59 in the latest session. Oracle's recent earnings have highlighted the rapid expansion of its cloud infrastructure business. The company reported fiscal first-quarter revenue of $19.3 billion, up 30% year over year, while cloud infrastructure revenue increased 121% to $7.4 billion.
Oracle has become an increasingly important part of the AI infrastructure trade as companies seek additional computing capacity outside the largest hyperscalers.
Amazon, Microsoft and Alphabet Advance
Amazon.com Inc. (AMZN) rose 2.13% to $251.19, while Microsoft Corporation (MSFT) gained 1.52% to $497.75. Alphabet Inc. Class A (GOOGL) advanced 1.30% to $347.33. Amazon remains heavily exposed to AI spending through Amazon Web Services. CEO Andy Jassy recently said AWS could eventually become a $1 trillion annual revenue business, compared with its current annualized revenue run rate of about $169 billion.
Microsoft continues to benefit from cloud and AI demand through Azure and its broader enterprise software ecosystem, while Alphabet remains exposed to AI through Google Cloud, search and its Gemini models.
Apple and Meta Join the Rally
Apple Inc. (AAPL) gained 1.38% to $337.00, while Meta Platforms Inc. (META) rose 1.34% to $682.31. The gains were broadly in line with the wider technology rebound. The seven largest technology-heavy stocks tracked as the so-called Magnificent Seven all rose during the latest session, with Nvidia, Tesla and Amazon among the stronger performers.
Tesla Also Moves Higher
Tesla Inc. (TSLA) advanced 2.27% to $366.20. Tesla was the strongest performer among the Magnificent Seven during Thursday morning trading before finishing the session higher. Tesla's technology exposure differs from the semiconductor and cloud names because its investment case also includes electric vehicles, autonomous driving and robotics.
AI Infrastructure Stocks Remain Volatile
Not every AI infrastructure stock participated in the rebound. CoreWeave Inc. (CRWV) fell 4.2% to $79.88, while other AI-linked hardware companies posted significantly stronger gains.
The divergence highlights the different risk profiles within the AI trade. Chipmakers with established revenue streams are trading alongside newer infrastructure companies that face significant capital requirements and financing needs.
Technology Stocks: Latest Prices
What Is Driving Technology Stocks?
Three factors are dominating the latest technology-stock action today:
AI spending: Nvidia's latest comments reinforce expectations that AI infrastructure demand will remain substantial. Huang's projection that chip sales could double next year adds another data point to the continuing AI investment cycle.
Interest rates: Technology stocks remain sensitive to Treasury yields because many of the sector's valuations depend on expectations for future earnings and cash flows. The 10-year Treasury yield falling below 5% helped support the latest rebound.
AI infrastructure spending: Cloud providers and semiconductor companies continue to invest heavily in computing capacity, chips and networking equipment. Oracle's 121% growth in cloud infrastructure revenue and Amazon's rising AWS investment illustrate the scale of spending across the industry.