AI investment, chip demand expectations rebound

Broadcom up 4%, SK hynix up 2%

GM surges 5.5% on Nasdaq switch plan

New York Stock Exchange [123RF]
New York Stock Exchange [123RF]

The tech-heavy Nasdaq Composite rose 1.2% Tuesday as Anthropic's plans for an initial public offering rekindled optimism over AI investment.

On the New York Stock Exchange, the Dow Jones Industrial Average closed up 15.99 points, or 0.03 percent, at 52,377.57. The S&P 500 gained 45.83 points, or 0.60 percent, to finish at 7,722.60, while the Nasdaq Composite jumped 308.43 points, or 1.18 percent, to 26,477.81.

Sentiment on Wall Street was further lifted by news of a large-scale fundraising deal involving Broadcom, coming on the heels of Anthropic's IPO filing.

Broadcom reportedly signed a $63 billion agreement with major financial institutions — including Bank of America, Blackstone, Citigroup and Morgan Stanley — to finance Anthropic's purchases of high-performance semiconductors.

The news fanned expectations for expanded AI infrastructure investment and stronger semiconductor demand, sending chip stocks broadly higher.

Broadcom rose 4.00 percent, while AMD gained 5.45 percent, Micron climbed 2.77 percent and SK hynix's American depositary receipts advanced 1.92 percent. The Philadelphia Semiconductor Index also rose 3.60 percent.

"It looks like the Anthropic news brought something of a relief rally to AI-related stocks, particularly semiconductors," said Chuck Carlson, CEO of Horizon Investment. "These were stocks that had fallen sharply over the past few weeks, so a rebound was overdue."

Anthropic filed a registration statement with the US Securities and Exchange Commission on Monday, formally launching the IPO process.

The company is reportedly targeting a valuation of up to $2 trillion and aims to raise $100 billion through the offering. If realized, it would be the largest stock market debut in US history.

Meta Platforms, by contrast, fell 1.64 percent after announcing it would expand its AI fundraising to a record $97.5 billion.

General Motors surged 5.54 percent after announcing it would move its listing to the Nasdaq under a technology-focused strategy.

A drop in crude oil prices, driven by hopes for progress in Middle East peace talks, also eased pressure on equities.

December-delivery Brent crude settled down 1.67 percent at $113.88 per barrel, while West Texas Intermediate fell 1.83 percent to $99.90.

Reports that Saudi Arabia, Pakistan and Turkey — three members of the Mecca Collective Defense Pact — along with Iran had agreed to continue peace talks weighed on oil prices.

Market attention is now turning to earnings reports from Microsoft and Alphabet due Wednesday, as well as the Federal Reserve's benchmark interest rate decision.

According to the CME FedWatch tool, futures markets are pricing in a 92.8 percent probability that the Fed will hold rates steady at its October FOMC meeting.


jiyun@heraldcorp.com