Nvidia, Intel lead rally in semiconductor stocks as optimism on economy boosts riskier assets

Nvidia, Intel lead rally in semiconductor stocks as optimism on economy boosts riskier assets

Semiconductor stocks rose on Thursday as investors regained their appetite for riskier assets and bought into bullish commentary this week from and . Chip stocks have been on inflation fears and concerns that the crisis in Ukraine will add to supply chain challenges. Through Wednesday's close, the was down 15% in 2022, while the Nasdaq and S&P 500 had dropped 12% and 6.8%, respectively. led the rally on Thursday, climbing about 9%. Earlier this week, Nvidia said at its investor day that the company's roadmap includes , as well as a plan to build the world's fastest AI supercomputer. Analysts liked what they heard. "Fundamentally we continue to believe Nvidia is uniquely suited to benefit from the growth of AI in hardware and potentially software," wrote Deutsche Bank's Ross Seymore, who recommends holding the shares, in a note on Wednesday. jumped over 6% on Thursday, which would mark its biggest single-day gain in more than year. CEO Pat Gelsinger was to make the case that government subsidies for domestic manufacturing would boost American national security and could help fix the current shortage of semiconductors that's roiling the automotive industry and other key areas of the economy. "Oil reserves have defined