Chip Stocks Jump as AMD Forecasts Massive AI-Driven Revenue Boost

This article first appeared on GuruFocus.

U.S. stocks opened higher on Wednesday as upbeat earnings and renewed AI optimism lifted tech shares, according to a Wednesday market update.

The Dow Jones Industrial Average climbed about 1%, while the S&P 500 and Nasdaq Composite each rose roughly 0.2% in early trade. Traders also watched a planned House vote that could end the long-running government shutdown later in the day.

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Chip stocks led the advance after Advanced Micro Devices (NASDAQ:AMD) laid out aggressive data-center targets at its analyst day, sending AMD up about 8% in morning trading.

The move helped lift other semiconductor names and reinforced hopes for sustained AI spending. Nvidia (NASDAQ:NVDA) also gained as chip-sector momentum returned.

Market participants said the potential reopening of government and chances of clearer fiscal signals may add to a constructive backdrop for equities, though officials' comments and economic data in coming days could sway sentiment.

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