Reported 4 months ago
Today, shares of major semiconductor companies like Broadcom, Arm Holdings, and Lam Research rallied, with each seeing significant gains due to positive artificial intelligence (AI) news and a favorable economic outlook. The companies are key players in the AI industry and have experienced strong growth in 2024, after a brief slowdown due to higher-than-expected inflation reports in April. The softer-than-expected May jobs report fueled hope for lower inflation and potential Federal Reserve interest rate cuts, boosting semiconductor stocks. Additionally, reports of Taiwan Semiconductor Manufacturing's investment in advanced chipmaking technology indicate continued strong demand for AI-related chips, benefiting companies like Arm Holdings and Lam Research. The semiconductor sector, driven by AI growth, may see an elongated upturn supported by falling interest rates and no recession.
Source: YAHOO