Shares of technology companies rose as chip stocks recouped a chunk of their Friday losses.
The PHLX Semiconductor index rose by more than 5%, one of its strongest performances in recent years, as concerns about Broadcom's conservative profit projections lessened. One strategist said the market response to Broadcom's projection looked like a short-term overreaction.
"Long term, the story remains intact," said J.D. Joyce, president of Houston money manager Joyce Wealth Management, in e-mailed commentary. "AI is alive and well-still early innings...might be choppy, but longer-term, AI will change the world."
Nvidia is teaming up with leading South Korean technology companies to build large-scale AI infrastructure in Asia.
Web-site building technology maker Wix.com is slashing about one-fifth of its workforce and scaling back parts of its business, as more consumers and small businesses lean on AI for tech tasks.