Why Nvidia, Taiwan Semiconductor Manufacturing, Arm Holdings, and Other Artificial Intelligence (AI) Stocks Rallied on Tuesday
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 (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.
Source Fool.com
Broadcom Ltd. Stock
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