Intel Corporation CEO Pat Gelsinger testified at a Senate, Science, and Transportation hearing entitled Developing Next-Generation Technologies for Innovation at the Russell Senate Office Building on Wednesday, March 23, 2022. While holding the semiconductor chip.
Tom Williams | CQ-Roll Call, Inc. | Getty Images
Semiconductor stocks rose Thursday as investors regained their desire for higher-risk assets and bought bullish commentary from Nvidia and Intel this week.
So far this year, chip stocks have been hit by inflationary concerns and concerns that the Ukrainian crisis will add to supply chain challenges. Until Wednesday’s closing price, iShares Semiconductor ETFs were down 15% in 2022, while Nasdaq and S & P 500 were down 12% and 6.8%, respectively.
Nvidia led the rally on Thursday, rising about 9%. Earlier this week, Nvidia said on Investor Day that its roadmap includes plans to build a new server chip focused on artificial intelligence and the fastest AI supercomputer in the world.
Analysts liked what they heard.
“Basically, we continue to believe that Nvidia is uniquely suited to benefit from the growth of AI in hardware and potentially software,” Deutsche Bank recommends holding shares. Ross Seymour wrote in a memo on Wednesday.
Intel exceeded 6% on Thursday. This will record the largest daily profit in over a year. CEO Pat Gelsinger will be in Capitol Hill on Wednesday, with government grants to domestic manufacturing strengthening U.S. national security and eliminating the current semiconductor shortages that are disrupting the auto industry and other key areas of the economy. Insisted that it could be useful.
“Oil reserves have defined geopolitics for the last 50 years,” Gelsinger said in an interview with CNBC. “It’s more important where the fabs are for the digital future,” he added, referring to semiconductor plants.
Intel plans to spend at least $ 20 billion on the Ohio Chip Factory Complex, and this month announced plans to spend $ 36 billion to build a new “megafactory” in Germany and other European hubs.
“Build them where we want and define the world we want to join in the United States and Europe,” Gelsinger said.
The chip rally was helped by a Labor Ministry report showing that last week’s first unemployed claims fell to their lowest since 1969. Investors have soared stocks in companies that are ready to benefit from the US economic recovery.
AMD was up almost 5% on Thursday, Broadcom was up nearly 4% and Qualcomm was up 3%. All of them are still down this year.
look: Buy a dip and stay in Nvidia for a long time, says Cramer