Semiconductor stocks were largely higher on Thursday, as quarterly results and guidance from industry bellwether Nvidia (NASDAQ:NVDA) spurred optimism that the artificial intelligence spending boom will continue.
Micron Technology (MU) shares rose 3.5%, while AMD (AMD) which competes with Nvidia (NASDAQ:NVDA), was up 0.5%. Nvidia shares fell 0.7%, but were off their worst levels of the session as analysts praised the Jensen Huang-led company.
“Sentiment has shifted to become much more positive, yet the company still cleared the bar,” Morgan Stanley analyst Joseph Moore wrote in a note to clients. “Just a few weeks ago consensus was $50B and there were fears of digestion, and now coming into the print consensus had risen to $53B including some China (which did not materialize in guidance).”
Moore continued: “That guidance for $7B of incremental revenue — the first time that a company has guided for that dollar sequential growth — without China. That’s in just one quarter, and based on the commentary we heard from management on the call — and what we continue to hear from [our] checks — continues to represent undershipment of true demand. The continued strength in Hopper is a testament to that, as compute shortages remain intense enough customers are still buying three-year-old Hoppers to serve some of that demand.”
Also seeing gains on Thursday were Broadcom (AVGO), which added 2.8% and Marvell Technology (MRVL), which tacked on 1.9%. Marvell is set to report quarterly results after the close of trading.
Other semiconductor stocks, such as Qualcomm (QCOM), Analog Devices (ADI), Texas Instruments (TXN), NXP Semiconductors (NXPI) and Intel (INTC) also saw modest gains on Thursday.