Semiconductors are surging like Nvidia just crushed earnings
The Nasdaq 100 is on track for its biggest daily gain since February as semiconductors rebound from their recent shellacking.
Nvidia is leading the charge with a double-digit gain, one day after it drove weakness for benchmark stock indexes. It’s the best showing for the chipmaker since its 16.4% gain on the heels of stellar earnings on that aforementioned February day.
And, in some respects, you could argue that Nvidia did just report a blowout earnings report. In the future. Via Microsoft.
The world’s largest publicly traded company reaffirmed its commitment to spending billions on the AI buildout during its earnings call on Tuesday evening – a signal that the demand for Nvidia’s chips isn’t in imminent danger of falling off a cliff even as analysts begin to question whether the returns on these AI investments will be worth the costs.
The gains are widespread across the industry, with 20 of 25 constituents in the VanEck Semiconductor ETF up at least 2% as of 11:30am ET.
