Major chip stocks surged as much as 6% during the trading session on Friday, September 4, as investors stayed bullish on AI momentum.
Among these stocks, SanDisk rose the most, up 6.2% at $1,651, followed by Micron, trading 4.27% higher at $999. SK Hynix climbed 3.95% to $170.15, while Intel advanced 3.37% to $94.76. AMD jumped 3.11% to $470.34 and Nvidia was up 2.39% at $233.91 by 10:03 am ET.
The latest rally comes amid going momentum over AI trade after NVIDIA has agreed to acquire Hugging Face for $12.93 billion, bringing a major open AI platform under the chipmaker's ownership. The deal will allow NVIDIA to scale Hugging Face's platform, boost its infrastructure and expand access to AI for developers and institutions across the globe.The acquisition will help the chipmaker to go beyond models of AI computing.
Shares also rose even as broader market remains mixed after US job growth for the month of August beat estimates as nonfarm payrolls rose 1,62,000, according to Bureau of Labor Statistics data released on Friday. The job growth topped Bloomberg estimates, while US unemployment rate remained at 4.1%. The strong payrolls was driven by a rebound in leisure and hospitality employment and government jobs. Manufacturing payrolls climbed by the most since 2023, while construction firms added the maximum number of jobs since January.
Chip stocks have remained volatile amid cycles of profit-taking and massive sell-offs, as concerns grow over heavy artificial intelligence spending by big tech companies, and pressures from new domestic chip production, reports said.
During Thursday's trading session, Broadcom dropped 6.6%, Sk Hynix was down 4.09%, Micron traded 2.43% lower at $932.85, while SanDisk dipped 2.09% after Broadcom declared quarterly earnings and forecast for AI chips. The company's forecast for the fourth quarter missed Wall Street estimates.
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