2024-08-06 14:43:54 ET
Since early last year, investors have embraced the potential of artificial intelligence (AI), scooping up shares of those companies best positioned to profit from this groundbreaking technology. However, a long bull run and stretched valuations had many investors wondering if the ongoing rally could continue. In recent weeks, some have taken a step back, looking for further evidence the accelerating adoption of AI would continue.
With that as a backdrop, as of 1:08 p.m. ET on Tuesday, chipmaker Nvidia (NASDAQ: NVDA) jumped 6.4%, foundry Taiwan Semiconductor Manufacturing Company (NYSE: TSM) climbed 5.8%, semiconductor and AI specialist Broadcom (NASDAQ: AVGO) rallied 4.5%, and chip designer Arm Holdings (NASDAQ: ARM) rose 3.9%.
A check of all the usual sources -- earnings results, changes to analysts' ratings, and regulatory filings -- turned up little in the way of company-specific news that helped push these AI stocks higher (more on that in a moment). That said, there was one obvious catalyst that helped spark a relief rally for AI stocks.
For further details see:
Why Nvidia, Taiwan Semiconductor Manufacturing, Arm Holdings, and Other Artificial Intelligence (AI) Stocks Rallied on Tuesday