Why Nvidia, Arm Holdings, and Other Artificial Intelligence (AI) Stocks Rallied on Wednesday
One of the biggest driving forces behind the market rally that kicked off early last year has been the accelerating adoption of generative artificial intelligence (AI). However, after the big run-up, investors have taken a step back, looking for additional evidence that the trend still had room to run. Several developments on Wednesday confirmed that this secular tailwind was still going strong.
With that as a backdrop, chipmaker Nvidia (NASDAQ: NVDA) surged 11.4%, memory and storage chipmaker Micron Technology (NASDAQ: MU) jumped 7.7%, chip designer Arm Holdings (NASDAQ: ARM) rose 6.6%, semiconductor foundry Taiwan Semiconductor Manufacturing (NYSE: TSM) climbed 5.4%, and AI and database specialist Oracle (NYSE: ORCL) rallied 2.9%, as of 11:40 a.m. ET on Wednesday.
A check of all the usual sources -- regulatory filings, earnings results, and changes to analysts' ratings and price targets -- turned up little in the way of company-specific news to account for the positive sentiment (more on that in a moment). That said, several catalysts helped spark a rally that sent most AI-related stocks higher.
Source Fool.com
Micron Technology Inc. Stock
Our community is currently high on Micron Technology Inc. with 97 Buy predictions and 5 Sell predictions.
As a result the target price of 126 € shows a positive potential of 28.57% compared to the current price of 98.0 € for Micron Technology Inc..
