Chip Stocks Rebound as Musk Taps NVIDIA Exclusively for SpaceX AI
NVDA sits 37% above its 52-week low of $164.07 on light trading volume (0.3× avg).
Summary
Semiconductor stocks are recovering Friday after a midweek rout triggered by disappointing guidance from AMD, Sandisk, and Western Digital. The sector got a lift from Elon Musk's announcement that SpaceX will build its AI infrastructure exclusively with NVIDIA hardware, reinforcing NVIDIA's dominance in AI compute. A weaker-than-expected U.S. jobs report also fueled a rotation back into growth names as rate-hike fears eased, with the leveraged SOXL ETF surging over 5%. The SIA reported global chip sales hit $403.3 billion in Q2, up 35% sequentially, underscoring robust underlying demand. For NVIDIA, the SpaceX endorsement adds to a string of positive catalysts, including strong Q1 results and a $91 billion Q2 revenue forecast.
At the time of this announcement, NVDA was trading at $224.57 on NASDAQ in the Technology sector, with a market capitalization of approximately $5.4T. The 52-week trading range was $164.07 to $236.54. This news item was assessed with positive market sentiment and an importance score of 7 out of 10. Source: Benzinga.