Philadelphia Semiconductor Index, a semiconductor group, also surged nearly 3%, as semiconductor stocks rallied in unison, with NVIDIA, the largest beneficiary of generative artificial intelligence (AI), soaring more than 8%.
On the 21st (local time), the Philadelphia Semiconductor Index jumped 2.83% from the previous trading day to 3560.74 points on the New York Stock Exchange.
On the New York Stock Exchange, Nvidia soared 8.47% from the previous trading day to $469.67.
This is attributed to expectations that NVIDIA, which will announce its earnings on the 23rd (local time), will announce earnings that exceed market expectations.
In addition, investment banks’ raising of their target prices also helped the rally.
On the same day, HSBC, a global investment bank, raised its target price while maintaining a Buy rating on Nvidia. HSBC raised Nvidia’s price target to $620. This means that it could rise by 80% from the current price.
HSBC analyst Frank Lee said in a report, “Nvidia demand for AI-specific semiconductors is overflowing,” and explained why the target price was raised, saying, “Nvidia’s stock price has enough room to rise.”
Nvidia seems to have soared more than 8% on the same day due to earnings expectations and HSBC’s upward target.
This is attributed to a large influx of low-priced technology purchases into the U.S. stock market.
Until now, technology stocks have been weak, with concerns over a generative artificial intelligence (AI) bubble. Not only did the Nasdaq fall for four consecutive days, but it also fell for three consecutive weeks on a weekly basis.
AMD also seems to have soared as a large number of low-priced purchases flowed in as technology stocks fell a lot.
◇ Intel’s 1.19% Up: Other semiconductor companies’ shares also rallied in unison. Intel rose 1.19%, Micron rose 0.58%, Qualcomm rose 0.53%, and Taiwan’s TSMC rose 1.60%, respectively.
As a result, the Philadelphia Semiconductor Index also soared nearly 3%.
