Semiconductor stocks extended their recovery on Thursday, pushing back against investor anxiety regarding artificial intelligence expenditures and the potential effects of higher borrowing costs. The rally marked a significant turnaround following a tough start to the week for the sector.
Intel shares surged 7.7% on Thursday, leading the charge in a broader rebound across chipmakers. Marvell Technology stock climbed 4.8%, while Advanced Micro Devices rose 6.5%. Arm Holdings also saw strong gains, with its U.S.-listed shares increasing by 8.6%.
Micron Technology shares advanced 5.5%, and SanDisk rose 6.2%, contributing to the sector’s overall strength. The gains suggest that market participants are moving past recent pessimism that had weighed on valuations earlier in the trading session.
The technology-driven upswing came amid broader market improvements, with the S&P 500 rising 1.14% and the Nasdaq climbing 1.69%. The VIX, often referred to as the market’s fear gauge, dropped sharply by 12.82% to 15.44.
Arms rally is impressive, but can the broader market sustain this momentum if interest rates stay high? The VIX drop is encouraging though.
Is this a sustainable rebound or just a dead cat bounce? I’m hesitant to jump back in until we see clearer AI spending data.
Finally, some good news for Intel fans. That 7.7% surge is a breath of fresh air after the early-week doom and gloom.