By Callum Keown
Tech stocks were showing early promise Thursday as the Nasdaq Composite Index tried once again to snap its losing streak.
The index extended its run to a fourth day, falling 1.2% Wednesday. But futures on the Nasdaq 100 rose 0.2% in early premarket trading, suggesting that Thursday's session could be a better one for the sector.
Taiwan Semiconductor Manufacturing Co.'s first-quarter earnings meant chip stocks were once again in focus ahead of the open. TSMC beat profit expectations, driven by demand for chips to power artificial intelligence technology. However, the company's American depositary receipts (ADRs) were down 2.3%.
The earnings appeared to boost sentiment across the sector. Advanced Micro Devices climbed 0.4% and Nvidia rose 1.2% in premarket trading. Arm Holdings, which tumbled 12% Wednesday as ASML's earnings dragged the sector lower, pointed 1.1% lower.
Micron Technology jumped 1.6% as the company looks set to become the latest semiconductor company to receive grants from the U.S. government, securing more than $6 billion toward the building of chip factories, Bloomberg reported Thursday. Intel, Samsung Electronics and TSMC have also been given billions of dollars in grants.
The global AI race is gathering more pace. Enterprise software company Oracle announced plans to invest more than $8 billion in Japan over the next decade to meet the growing demand for AI infrastructure and cloud computing. The stock was 0.3% higher ahead of the open. Last week, Microsoft said it would invest $2.9 billion to expand its cloud and AI capabilities in Japan.
Not to be outdone, Cisco Systems unveiled its new AI-focused security system Hypershield, which it said would protect data centers and clouds at the heart of the AI revolution. The product launch comes after Cisco's $28 billion acquisition of cybersecurity company Splunk, completed last month. The stock rose 0.9% early Thursday.
Write to Callum Keown at callum.keown@barrons.com
This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
April 18, 2024 08:50 ET (12:50 GMT)
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