Wall Street’s major indexes surged Friday, with the Nasdaq leading the way, buoyed by positive revenue forecasts from Broadcom that reignited enthusiasm for artificial intelligence and boosted chip stocks.
Broadcom’s quarterly revenue forecast beat Wall Street estimates, predicting strong demand for its custom AI chips, sending its shares up more than 21%. This important milestone allowed the company to exceed the $1,000 billion market capitalization mark for the first time. “It’s no surprise that stock performance in the AI sector has investors excited,” commented Peter Andersen, founder of Andersen Capital Management.
The wave of optimism extended to other chip stocks, with Marvell Technology climbing 9.5%, while a semiconductor stock index gained 3.7%. Overall, U.S. stocks have hit record highs multiple times this year, fueled by growing investor interest in big tech stocks capitalizing on AI trends.
(With input from agencies.)
