Chip stocks have been rising in the past year on optimism that the AI boom will require companies to buy more semiconductors and memory.fell 6%. The SMH, an index that tracks semiconductor stocks, was down 6%, on pace for its biggest one-day loss in a month.that came in below consensus expectations — raising fears about the strength of the economy but also potentially increasing chances that the Federal Reserve will cut interest rates.
The sector has been led by Nvidia, which is still up nearly 129% so far in 2024, and which dominates the market for AI data center chips.Other chip companies want investors to recognize their AI products and the potential for growth. Intel and AMD sell AI chips as well, though demand for them is less than for Nvidia's products.
that can run AI programs on the device itself, instead of relying on servers in the cloud. Broadcom, which works with big companies to develop custom AI chips, reports third-quarter earnings on Thursday.Crime and Courts
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