Nvidia's stock marked its 10th consecutive day of gains on Tuesday as investors seemed to be shaking off some worries that have been weighing on the artificial-intelligence trade.
The chip maker's stock (NVDA) finished up 3.8%, and is on its longest winning streak since Nov. 14, 2023, according to Dow Jones Market Data. It's up 18.97% over this period.
The shares have been stuck in a months-long rut as investors have sought other AI-related plays with more growth potential, and amid broader concerns about the sustainability of AI spending. Nvidia's stock is up 5.37% so far this year.
Jamie Meyers, senior securities analyst at Laffer Tengler Investments, told MarketWatch that investors are "coming back to reality" after selling winners earlier in the year on fears that the tech trade was losing steam, and rotating into other areas such as consumer staples.
"The reality is that's where the growth lies," Meyers said, referring to AI-related stocks.
Nvidia's stock has struggled to find a recent catalyst, but Meyers pinned that on its roadmap being "so well-known, there's very little to surprise us." To him, however, the chip maker's frequent updates reflect that its "growth is astronomical."
D.A. Davidson managing director Gil Luria told MarketWatch that investors look "increasingly optimistic about the trajectory of AI."
With investments in the space extending into next year, they "are buying the semis companies that will continue to sell into the data-center buildout," he said in emailed comments.
Shares of Advanced Micro Devices $(AMD)$ also notched a 10-day winning streak on Tuesday - the longest since they rose for 12 straight sessions on May 16, 2005, Dow Jones Market Data showed. The stock is up 30.11% over this period, according to the data.
Meanwhile, Intel's stock $(INTC)$ was down 2.14% on Tuesday following its best nine-day performance on record, according to Dow Jones Market Data. Its shares rose 58.29% over that period, the data showed.
Intel's stock "simply moved too far too fast and witnessed profit-taking today," Andrew Rocco, stock strategist at Zacks Investment Research, told MarketWatch.
In his view, Intel's stock "was simply stretched in the short term," after a mostly sluggish performance driven by investors' fears that it had fallen too far behind in the AI race.
Still, Rocco sees Intel, Nvidia and AMD benefiting in the intermediate term from the continued AI buildout. Additionally, the rise of agentic and physical AI should help grow chip makers' earnings further, Rocco said in emailed comments, as those applications will rely on immense amounts of computing power.
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