US stocks edged higher on Monday, led by gains in the semiconductor sector, which saw a 0.6% increase in the S&P 500 index. The tech-heavy Nasdaq rose 1.2%, while the Dow lost steam in the afternoon, ending with a minor downtick.
Taiwan-based Foxconn posted record revenue for the fourth quarter, citing strong demand for artificial intelligence (AI) servers. This boost helped shares of companies like Nvidia and Micron Technology rise. Micron’s tech is used in Nvidia’s AI platforms, driving its stock up 10.5%.
Other semiconductor stocks, including Teradyne and Super Micro Computer, also gained ground after positive commentary from analysts. Analysts expect an update on Nvidia’s Blackwell AI chips to drive further growth.
However, not all stocks fared well. Palantir Technologies saw a 5% drop in shares, with Morgan Stanley downgrading the stock due to valuation concerns. Essex Property Trust and T-Mobile US also fell, with their shares dropping 4% and 3.1%, respectively.
The S&P 500’s gains were largely driven by optimism over AI server demand, which is expected to drive growth in the semiconductor industry. The Nasdaq’s rise was fueled by Nvidia’s expected keynote remarks at the CES conference, where it will unveil its new Blackwell AI chips.
Source: https://www.investopedia.com/s-and-p-500-gains-and-losses-today-chip-stocks-jump-as-foxconn-spotlights-ai-demand-8769921