The US stock market soared on Monday as a reinvigorated AI trade drove up chip stocks at the start of a critical week testing investor appetite in the AI boom.
US chipmaker Broadcom led the rally after announcing it would extend its deal with Apple to supply bespoke semiconductors until 2031, adding to its tie-ups with Alphabet and Meta.
Following multiple selloffs, Monday’s rally offers encouragement ahead of Samsung’s earnings report on Tuesday and fellow Korean chipmaker SK Hynix’s $28 billion expected US listing Friday, which will be parsed “for signs that tech’s recent volatility is stabilizing,” a UBS analyst told Bloomberg. SK Hynix is up 260% on the year, as Big Tech firms race to add compute.