The Philadelphia Semiconductor Index rose for a third straight session on Thursday, and AMD led the advance with a surge of more than 7%. Nvidia also rebounded off its 50-day moving average line, popping more than 2%, while a Mizuho analyst reported investor feedback running more toward continued AI spending than the opposite.
Chip index extends its rebound
The Philadelphia semiconductor index, known as SOX, rose for the third straight session Thursday, helped by reassuring forecasts on AI data center spending. In midday trades, the SOX advanced 3%. The index, which includes the 30 largest U.S.-traded chip stocks, is still trading beneath its 50-day moving average line, a key technical level.
Among the index's components, major advancers included Advanced Micro Devices, Arm Holdings, Intel and Micron Technology. AMD, Wednesday's IBD Stock Of The Day, surged more than 7% to 549.89 in midday trades. Analysts say the company is seeing continued strong demand for its graphics processing units and central processing units for data centers running artificial-intelligence applications.
AMD stock is in an 11-week consolidation pattern with a buy point of 584.73, according to IBD MarketSurge charts. Rival Intel saw its shares jump nearly 10% to 110.86; Intel is reportedly in talks with memory-chip maker SK Hynix to use its planned Ohio factory.
Nvidia rebounds off its 50-day line
Elsewhere among chip stocks, Nvidia rebounded off its 50-day line and popped more than 2% to 218.75 in recent trades on Thursday.
According to Investor's Business Daily: "Buy-side sentiment on AI and semis remains very positive," Mizuho Securities trading-desk analyst Jordan Klein said in a client note Thursday. Klein said he spent Wednesday meeting with investors in New York and found no panic over Anthropic CEO Dario Amodei's comments on slowing AI development pace, with feedback running more toward continued spending than the opposite.
Chip stocks had tumbled Monday after Amodei called on Saturday for a slowdown in developing leading AI capabilities over safety concerns, a comment that sparked worry that hyperscale cloud-computing firms and other data-center builders would slow spending on AI hardware. AMD stock is on the IBD 50 and Tech Leaders stock lists; Micron and Nvidia also appear on the Tech Leaders list.
Source: Investor's Business Daily
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