What’s up with AI-related stocks Nvidia, AMD, Broadcom and Super Micro on Thursday?

Semiconductor stocks, especially those related to artificial intelligence technology led by Nvidia Corp (NASDAQ:NVDA), Broadcom Inc (NASDAQ:AVGO), Advanced Micro Devices, Inc (NASDAQ:AMD), Arm Holdings plc (NASDAQ:ARM), Super Micro Computer, Inc (NASDAQ:SMCI) rose after the US Federal Reserve cut its benchmark interest rate to boost growth.

The US Federal Reserve decided to cut its benchmark interest rate by 50 basis points for the first time since 2020, setting the interest rate at 4.75% and 5%. The cut is expected to boost discretionary spending by companies.

The rate cut will be a welcome move as semiconductor companies have invested heavily in Big Tech (incl Microsoft Corp (NASDAQ: MSFT), Amazon.Com Inc (NASDAQ:AMZN), and Google parent Alphabet Inc (NASDAQ:GOOG) (NASDAQ:GOOGL)) spending on their AI ambitions, which involve substantial capital expenditures.

Read also: Super Micro Poised for Expansion as Gross Margin Relates to Ease Internal Control Risks Assessed in: Analyst

Semiconductor companies are also under pressure from US sanctions on China, a crucial market. Therefore, US investors and semiconductor chiefs are closely watching the incoming president’s agenda, expecting a softer stance towards China.

According to a CNBC poll, Republican nominee Donald Trump appeared to be an investor favorite as the S&P 500 and Nasdaq saw significant gains during Trump’s tenure as president.

However, the current Biden administration has begun awarding semiconductor grants to companies to strengthen its position.

Contract chip maker Taiwan Semiconductor Manufacturing Co (NYSE:TSM), a key supplier of AI chips to U.S. semiconductor companies, remains heavily invested in its fabled Arizona facility to produce AI chips after awarding U.S. chip subsidies. It recently secured two smartphone chip deals from Google and Apple.

Price Actions: Shares of NVDA were up 3.16% at $116.95 in pre-trade, last checked on Thursday. AMD rose 3.74% to $153.84, AVGO rose 3.45% to $167.25, SMCI rose 3.00% to $450.00, TSM rose 2.80% at $171.97, INTC rose 2.31% to $21.25, 1.4%, ARM is up 2.80% to $171.97.

Photo via Shutterstock

Next: Transform your trading with Benzinga Edge’s unique market trading insights and tools. Click now to access unique information that can put you ahead in today’s competitive market.

Get the latest stock analysis from Benzinga?

This article What’s happening to AI-related stocks Nvidia, AMD, Broadcom and Super Micro on Thursday? originally appeared on Benzinga.com

© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.