Stocks traded mixed Tuesday as investors wondered if a resolution to the war in Iran was enough to lift equities.
Some artificial-intelligence stocks rose, extending the sharp gains from Monday. Intel, Lumentum, Marvell, Micron, Seagate, and Western Digital advanced. Meanwhile, Coherent and Corning fell 3.5% and 0.9%, respectively.
Advanced Micro Devices dipped 0.1%. The chip maker's market capitalization topped $1 trillion for the first time ever on Monday as excitement built over Meta's Muse AI agent.
Software developers climbed as they often do when chip and memory stocks struggle. Adobe, Salesforce, ServiceNow, and Workday rose.
Sandisk gained 6.1% to $1,875.28. Rosenblatt initiated coverage of the stock with a Buy rating and a price target of $2,400, representing a 36% upside from Sandisk's closing price of $1,766.64 on Monday.
GameStop advanced 3.9% after a Form 4 filing showed that CEO Ryan Cohen bought 1.15 million more shares of the videogame retailer.
Alibaba rose 1.4%. The company announced the Zhenwu V900 AI, its most powerful AI chip that performs three times better than its predecessor. It also launched its Qen3.8-Max model, which Alibaba said is the largest and most powerful of its AI flagship releases so far.
AutoZone rose 5.3%. The auto-parts retailer surpassed Wall Street's earnings estimates for the fiscal fourth quarter, but both sales and same-store sales missed consensus forecasts.
Vicor gained 13% after the power electronics company raised its revenue growth forecast for the fiscal third quarter to more than 20%, up 10% from the company's previous projection. Management attributed the guidance raise to royalty fees from a recent patent license deal for its AI-power technology.
Viking Therapeutics surged 22% after the biopharmaceutical company released positive trial results for its injectable weight-loss drug, which is positioned as a direct competitor to Eli Lilly's Zepbound and Mounjaro.
Diagnostics providers Quest Diagnostics and Labcorp Holdings fell 4.4% and 2.9%, respectively. A recent report from The Centers for Medicare & Medicaid Services showed that Medicare has been paying 16% more for laboratory services than private payors. The federal agency said it would adjust most Medicare payments with the private sector rates.
On Holding advanced 12%. At its Investor Day, the Swiss footwear and sports apparel company set new midterm financial targets for its absolute net sales and gross profit margin and reiterated its fiscal 2026 outlook. The company also said it would repurchase up to $1 billion in Class A ordinary shares by December 2029.
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