Chip stocks rebounded on Wednesday as investors grew increasingly confident that big companies would continue to spend heavily on the technical infrastructure underpinning artificial intelligence.
Stocks including Nvidia, Arm and AMD had fallen sharply on Tuesday amid anxiety about the sustainability of the past year’s huge AI rally, highlighting investors’ sensitivity to the spending plans of a handful of Big Tech groups.
Jitters about the AI-related rally grew last week after Google’s quarterly numbers, triggering a rollercoaster few days for technology investors that wiped nearly $500bn off the value of Nvidia in little more than a week.
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