New York —
Big Tech, once the market leader, is being overshadowed by gains from the new stars of the artificial intelligence boom: semiconductor chipmakers.
Nvidia shares (NVDA) climbed almost 9% Thursday after strong earnings in which the chipmaker not only doubled its sales from a year ago, but also reassured investors with forecasts for continued blockbuster growth. That sent some other chipmaker stocks – and the whole market – higher. The tech-heavy Nasdaq rose 1.57% and the S&P 500 rose 0.72%.
Shares in semiconductor companies such as Intel (INTC) continue to surge, benefitting from their role in the supply chain for the AI buildout. However, Big Tech stocks like Meta (META) have dropped in the last year as the company pours billions of dollars into building AI infrastructure.
The S&P 500 is up 13% this year, adding roughly $7.6 trillion in market value. Chip stocks have accounted for 37% of those market value gains, according to Mike O’Rourke, chief market strategist at JonesTrading.
