On Monday, the Nasdaq Composite Index climbed, extending its gain to 1.2%, while semiconductor stocks moved higher, with ARM Holdings plc (ARM.US) rising more than 5%, NXP Semiconductors NV (NXPI.US) gaining over 4%, and SK Hynix Inc (SKHY.US) up more than 3%.
Micron Technology Inc (MU.US), NVIDIA Corp (NVDA.US), and Intel Corp (INTC.US) each advanced nearly 3%, while Broadcom Inc (AVGO.US) rose more than 2%. Qualcomm Inc (QCOM.US), Taiwan Semiconductor Manufacturing Co Ltd (TSM.US), and Advanced Micro Devices Inc (AMD.US) each gained nearly 2%.
The US AI bull market is facing a "critical judgment week": earnings from three major cloud giants, a Federal Reserve decision, and other events mean US stocks are entering an extremely decisive week.
On the surface, this is a dense earnings window. In essence, it is a synchronized stress test of the foundational narrative of the artificial intelligence (AI) bull market.
The upcoming earnings from three hyperscale cloud service providers — Alphabet, Microsoft, and Amazon — as well as two major memory chip giants — SK Hynix and Samsung Electronics — will test the quality of the recently much-worried AI trade.
At the same time, the Federal Reserve will announce its interest rate decision this week, and the market widely expects the central bank to hold steady. What is more noteworthy than the rate decision itself is Chairman Warsh's communication stance at the post-meeting press conference.
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