Why Nvidia, Arm Holdings, Broadcom, and Other Artificial Intelligence (AI) Stocks Rallied on Friday
One of the driving forces behind the current market rally is excitement regarding the implications of artificial intelligence (AI) and the promise of productivity gains that will boost profits. However, the adoption of this groundbreaking technology has been measured, thanks to historically high interest rates, as the Federal Reserve Bank has been battling persistently high inflation. However, comments made in a speech today by Federal Reserve Chair Jerome Powell suggested the end is in sight.
As of 3:28 p.m. ET on Friday, chip designer Arm Holdings (NASDAQ: ARM) had rallied 4.7%, chipmaker Nvidia (NASDAQ: NVDA) had jumped 4%, semiconductor foundry Taiwan Semiconductor Manufacturing Company (NYSE: TSM) had climbed 2.6%, and semiconductor giant (NASDAQ: AVGO) had risen 2.1%.
A check of all the usual sources -- earnings results, regulatory filings, and changes to analysts' ratings and price targets -- turned up little in the way of company-specific news that helped drive these AI stocks higher (more on that in a moment). This suggests that investors were focused on the shift in Fed policy and what it means for the future.
Source Fool.com
Broadcom Ltd. Stock
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