Chip Stocks Rebound on Bargain Hunting as Morgan Stanley Calls Pullback ‘Healthy’
Summary
- Morgan Stanley described the latest pullback as a healthy correction and said the bull market is likely to continue.
- Semiconductor stocks including Intel, Nvidia, Marvell Technology, Micron and AMD posted sharp gains as bargain buying returned.
- Major technology stocks including Apple, Amazon, Alphabet, Meta Platforms and Microsoft closed lower.
Forecast Trend Report by Period
U.S. stocks rallied sharply in New York on June 8 as bargain hunters piled back into semiconductor shares that sank last week. Morgan Stanley described the selloff as a “healthy correction,” saying the bull market is likely to continue given earnings growth and resilient economic conditions.
Intel and Nvidia led the gains among chipmakers. Intel surged 11.19% to $110.27 in regular Nasdaq trading after news it plans to supply next-generation artificial intelligence tensor processing units, or TPUs, to Google and Nvidia.
Nvidia rose 1.73% to $208.64. During a visit to South Korea, Chief Executive Officer Jensen Huang suggested he is sketching out a broader AI strategy spanning AI chips, physical AI and mobility. He also said investors should welcome the chance to buy the stock at a discount. Marvell Technology, which Huang called a candidate to become the next $1 trillion company by market value, climbed 9.63% on news it is set to join the S&P 500. Micron gained 9.87% and AMD added 5.14%.
Optical communications stocks also moved higher. Corning jumped 5.61% to $187.54 in regular New York Stock Exchange trading after news it will supply optical fiber and cables to Amazon data centers. Poet Technologies rose 3.54%, Applied Optoelectronics advanced 11.10%, Coherent gained 6.62% and Lumentum added 3.68%.
Tesla, the electric-vehicle maker led by Elon Musk, climbed 4.59% to $408.95 in regular Nasdaq trading. The advance came as strong sales in China coincided with investor expectations for a public listing of Musk’s space company SpaceX.
Major technology shares, however, declined. Apple fell 1.89% to $301.54 in regular Nasdaq trading after its annual Worldwide Developers Conference, or WWDC, where it unveiled Siri features with enhanced AI capabilities. Investors judged the announcements to have fallen short of expectations. Amazon slipped 0.33% after issuing C$14 billion of corporate bonds, fueling concerns about its financial stability. Google parent Alphabet fell 1.20%, Meta Platforms lost 1.28% and Microsoft dropped 1.18%.
Lee Mi-a, Hankyung.com reporter, mia@hankyung.com
Korea Economic Daily
hankyung@bloomingbit.ioThe Korea Economic Daily Global is a digital media where latest news on Korean companies, industries, and financial markets.
