US stocks advanced in late trading on Monday, with the three major indices all hitting new intraday record highs.
Iran announced it would suspend information exchanges with the United States, in protest of Israel's actions and in retaliation for repeated US violations of a ceasefire agreement.
The Dow Jones Industrial Average rose 22.62 points, or 0.04%, to 51,055.08.
The Nasdaq Composite gained 188.49 points, or 0.70%, to 27,161.11.
The S&P 500 increased by 34.74 points, or 0.46%, to 7,614.80.
**NVIDIA (NASDAQ: NVDA)**
NVIDIA's stock rose more than 6% after it unveiled new personal computer processors.
Dell Technologies and HP Inc. followed NVIDIA higher, gaining over 1% and about 4%, respectively.
The announcement triggered a significant shift in the chip market landscape, with shares of traditional giants taking a hit.
**Intel Corporation (NASDAQ: INTC)**
Intel, which has dominated the PC chip market for years, saw its stock fall more than 6%.
Intel faces unprecedented competitive pressure.
At the same event, Intel launched its Xeon 6+ processor based on the 18A process, but the spotlight was completely overshadowed by NVIDIA's RTX Spark.
Analysts noted that Intel's stock has already surged over 200% this year, leaving it with a high valuation and greater risk of a pullback if competition intensifies.
**QUALCOMM Incorporated (NASDAQ: QCOM)**
QUALCOMM's stock dropped 8%.
For years, QUALCOMM has been working to push the Windows on Arm platform into the mainstream, with its Snapdragon X series showing impressive battery life and performance.
However, NVIDIA's entry with its software ecosystem advantages positions its RTX Spark chip as a direct and formidable competitor to the Snapdragon X Elite in the high-end market.
While a QUALCOMM executive responded by saying "welcome to the family," investors were clearly not convinced, believing NVIDIA's move will severely squeeze QUALCOMM's growth potential in the Windows PC space.
Analysts believe NVIDIA, with its AI advantages and a market cap around $3.2 trillion, is reshaping the decades-old semiconductor industry landscape by entering the PC market.
Laptops equipped with RTX Spark are set to launch from major manufacturers like Dell, HP, Lenovo, and ASUS this fall, which could further clarify the competitive picture.
Meanwhile, US-Iran tensions remain a potential risk factor for markets.
Iran has resumed production at three South Pars offshore gas platforms, and oil prices rebounded more than 3% on Monday after falling on Friday.
However, investors appear more inclined to bet on AI-driven growth prospects than to worry about the impact of geopolitical conflict on energy markets.
The Iranian news agency Tasnim stated on Monday that Iranian negotiators would stop exchanging information with the US through intermediaries and that Iran would take action to completely block the Strait of Hormuz in retaliation for the US's continued violation of the ceasefire agreement.
Tasnim's post on social media directly referenced Israeli military operations in Lebanon against Hezbollah, which is backed by Iran.
Following the report, oil prices jumped.
The report marked a setback for diplomatic efforts to end the war, which is now in its fourth month.
US President Trump responded by saying he did not care if peace talks with Iran ended.
In a phone interview, he stated, "I really don't care, I don't care at all." He also said he "would ask" Israeli Prime Minister Netanyahu "about the situation in Lebanon."
Over the weekend, Netanyahu praised Israeli forces for capturing Beaufort Castle as they advanced into southern Lebanese territory.
Trump later posted on Truth Social that he had "a very productive call" with Netanyahu, adding that "no troops will enter Beirut, any troops already on the way have been ordered to return."
In another post, Trump also wrote that negotiations with Iran "are continuing quickly."
Previously, the US and Iran exchanged attacks over the weekend.
US Central Command stated on Monday that US forces intercepted two Iranian ballistic missiles targeting US forces stationed in Kuwait.
US and Iranian negotiators reached a 60-day memorandum of understanding last week to extend a fragile ceasefire, helping push stock markets to new highs.
However, President Trump concluded a meeting in the White House Situation Room without announcing his final decision on the agreement.
Tim Holland of Orion noted, "It seems like two steps forward, one step back between the US and Iran, but the market clearly does not expect hostilities to re-accelerate to the levels seen in the first two or three weeks of the conflict. I think we are still closer to a way out than to the brink."
The chief investment officer expects energy prices to remain lower than they were roughly four to six weeks ago.
Holland believes that for energy prices to break through that threshold, the conflict would need to escalate beyond the peak hostility levels seen earlier.
Comments