Nvidia, AMD Lead Chip Stocks Rally as AI Spending Accelerates

Sep 29 - Semiconductor shares moved higher on Monday, with Nvidia NVDA and Advanced Micro Devices AMD leading the advance.

Nvidia climbed almost 3% in late morning trade. AMD rose 2.7%. Both companies fell last week despite continued interest in artificial intelligence spending. Nvidia also said it was stepping up robotics development by releasing new open AI models and simulation tools.

Intel (INTC) slipped 2.5% even after Deutsche Bank raised its price target to $30 from $23. Analyst Ross Seymore cited steps the company has taken to strengthen its balance sheet, including an investment from Nvidia.

Chip equipment makers were also stronger. Lam Research (LRCX) gained 2.8% after Deutsche Bank lifted its rating to Buy from Hold and set a $150 price target. KLA Corp. KLAC added 1.3%, while ASML ASML edged higher.

Memory suppliers advanced sharply. Western Digital WDC, Seagate STX, and Micron Technology (MU) rose between 5% and 9%, with Western Digital leading the group. Morgan Stanley pointed to a firm hard-disk drive cycle, boosted by AI demand, in raising its targets on Western Digital and Seagate.