A number of stocks jumped in the afternoon session after confidence in the artificial intelligence market was renewed, pushing both the S&P 500 and Nasdaq to new all-time intraday highs.
The rebound was led by chipmaker Nvidia, whose shares rose nearly 2% after its CEO confirmed that demand for computing has “gone up substantially” in recent months. These comments helped reassure the market that the AI boom is supported by genuine demand, calming fears that were sparked a day earlier by a report questioning the profitability of Oracle’s cloud business. The rally was strong enough to put the information technology sector on pace for a fresh closing high. This upward momentum occurred despite potential headwinds from an ongoing U.S. government shutdown, which entered its second week.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.
Among others, the following stocks were impacted:
Lumen’s shares are extremely volatile and have had 50 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 6 days ago when the stock gained 4.3% on the news that sentiment in the tech space improved, fueled by significant developments from OpenAI.
OpenAI’s valuation reportedly soared to $500 billion after a share sale, making it the world’s most valuable startup and reinforcing investor confidence in the AI boom. Further fueling the rally, OpenAI announced partnerships with South Korean chipmakers SK Hynix and Samsung for its ambitious ‘Stargate’ project, a massive undertaking aimed at building AI infrastructure. This news created a positive ripple effect across the tech landscape, particularly for semiconductor companies, as it signals sustained, large-scale investment in the hardware that powers AI. The developments have bolstered the entire sector, pushing technology stocks to new records.
Lumen is up 25.4% since the beginning of the year, but at $7.04 per share, it is still trading 30.5% below its 52-week high of $10.12 from November 2024. Investors who bought $1,000 worth of Lumen’s shares 5 years ago would now be looking at an investment worth $694.52.
Today’s young investors likely haven’t read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next.
A number of stocks jumped in the afternoon session after confidence in the artificial intelligence market was renewed, pushing both the S&P 500 and Nasdaq to new all-time intraday highs.
The rebound was led by chipmaker Nvidia, whose shares rose nearly 2% after its CEO confirmed that demand for computing has “gone up substantially” in recent months. These comments helped reassure the market that the AI boom is supported by genuine demand, calming fears that were sparked a day earlier by a report questioning the profitability of Oracle’s cloud business. The rally was strong enough to put the information technology sector on pace for a fresh closing high. This upward momentum occurred despite potential headwinds from an ongoing U.S. government shutdown, which entered its second week.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.
Among others, the following stocks were impacted:
Lumen’s shares are extremely volatile and have had 50 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 6 days ago when the stock gained 4.3% on the news that sentiment in the tech space improved, fueled by significant developments from OpenAI.
OpenAI’s valuation reportedly soared to $500 billion after a share sale, making it the world’s most valuable startup and reinforcing investor confidence in the AI boom. Further fueling the rally, OpenAI announced partnerships with South Korean chipmakers SK Hynix and Samsung for its ambitious ‘Stargate’ project, a massive undertaking aimed at building AI infrastructure. This news created a positive ripple effect across the tech landscape, particularly for semiconductor companies, as it signals sustained, large-scale investment in the hardware that powers AI. The developments have bolstered the entire sector, pushing technology stocks to new records.
Lumen is up 25.4% since the beginning of the year, but at $7.04 per share, it is still trading 30.5% below its 52-week high of $10.12 from November 2024. Investors who bought $1,000 worth of Lumen’s shares 5 years ago would now be looking at an investment worth $694.52.
Today’s young investors likely haven’t read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next.
