US chip company shares rise — MarketWatch
In the United States, shares of chip companies rose sharply on Thursday, continuing their recovery after a major sell-off earlier in the week. As MarketWatch reports, Intel shares gained 7.7%, Arm Holdings rose 8.6%, and Advanced Micro Devices added 6.5%.
Rise in sector shares
Shares of Marvell Technology, one of the makers of chips for artificial intelligence systems, rose 4.8%. Micron Technology shares gained 5.5%, while Sandisk added 6.2%. Shares of server and component makers began recovering as early as Tuesday, when Wall Street analysts said that the underlying drivers of AI infrastructure growth remain strong.
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Concerns over rates and AI
D.A. Davidson managing director Gil Luria noted that falling oil prices and US Treasury yields likely eased some investor concerns following the Federal Reserve meeting. The regulator raised interest rates by a quarter of a percentage point and indicated the possibility of at least one more increase.
According to Luria, data center buildouts are sensitive to interest-rate levels, so signs that rates may not rise as much are positive for this segment and semiconductor makers. On Monday, the sector suffered after Anthropic chief Dario Amodei and OpenAI chief Sam Altman called for slowing the development of artificial intelligence. Investors feared that such steps could affect spending on AI infrastructure.
