The 0.1% decline in Producer Price Index (PPI) and core PPI inflation surprised investors on Wednesday, Sept. 10, leaving the market with a mixed but ultimately positive reaction. The S&P 500 and tech-heavy Nasdaq Composite reached record highs, but the Dow Jones Industrial Average slipped.
The S&P 500 was 0.30% higher at closing, reaching a 52-week high in early trading hours. Nasdaq was up 0.03%, after reaching a 52-week high for the second consecutive day during trading hours. Despite Nvidia being a top performer, the DJIA slipped 0.48%, partly owing to Apple stock selling off after its latest iPhone reveal on Tuesday. The Russell 2000, despite opening strong, fell 0.18% during the session.
Oracle emerged as a top performer, gaining 35.5% despite narrowly missing the top and bottom lines in its earnings report, released on Tuesday. As artificial intelligence and cloud infrastructure paved the way, AI chip manufacturer Taiwan Semiconductor Manufacturing went 3.8% higher, and AI semiconductor play Broadcom was up 9.8%.
Image source: Joe Raedle/Getty Images
The worst-performing five S&P 500 stocks today are:
- Synopsys Inc SNPS: -35.8%
- Trade Desk Inc TTD: -11.9%
- Epam Systems Inc EPAM: -7.2%
- Cadence Designs Systems Inc. CDNS: -6.4%
- Bio-Techne Corp TECH: -5.9%
Five S&P 500 stocks making big moves today are:
- Oracle Corp ORCL: +35.9%
- Broadcom Inc AVGO: +9.8%
- Vistra Corp VST: +7.9%
- Constellation Energy Corp CEG: +6.4%
- GE Vernova Inc GEV: +6.3%
Stocks also worth noting include:
- Apple AAPL: -3.2%
- Amazon AMZN: -3.3%
- CoreWeave CRWV: +16.8%
- Nvidia NVDA: +3.8%
- GameStop Corp GME: +3.4%
- Taiwan Semiconductor TSM: +3.8%
Related: Investors write off Oracle earnings miss as management promises stratospheric growth
Taiwan Semiconductor climbs after revenue report
The semiconductor chipmaker’s stock closed 3.8% higher, reaching a 52-week high during early trading.
After TSMC (TSM) posted its August revenue, a 34% increase year over year or NT$335.77 billion ($11.1 billion), signalling a strong demand for its semiconductor chips, its stock soared.
The robust increase in revenue shows its integral role in the artificial boom. TSMC is also the leading chipmaker for Nvidia, a world leader in artificial intelligence chips, and is currently helping them insource and build their GPUs in the US.
More AI Stocks:
- Veteran analyst revamps Palantir stock game plan after slump
- Veteran Nvidia analyst drops blunt 4-word message on its future
- AI stocks face a reality check after a $1.5 billion implosion
Broadcom CEO profits from Artificial Intelligence success
Hock E. Tan, CEO of Broadcom, a trillion-dollar semiconductor manufacturing company, has a substantial personal reward for leading the company’s AI boom.
Today, Broadcom was one of the top S&P 500 performers after Oracle and closed 9.7% higher. It also reached a 52-week high on Tuesday before Wednesday’s advance.
Last week, Broadcom beat analyst expectations and said it secured a $10 billion deal with a mystery customer, which analysts believe is OpenAI, as reported by the Financial Times.
In the September 9 episode of his show Mad Money, Jim Cramer said, “I think the customers are saying, you know what, I really want Nvidia, but it’s really expensive. They want a price break.” He also believes that “Broadcom’s stock is up in large part because people feel they can rival Nvidia.”
If this continues and Broadcom is able to meet its AI revenue goals between fiscal years 2028 and 2030, Tan can receive more than $600 million in stock awards.
Related: Broadcom ties its fate to a massive AI gamble
Oracle comes out on top, surprises Wall Street
Even after Oracle’s fiscal first quarter report, out on Tuesday, did not meet expectations, shares managed to climb 35.95% higher as the markets closed on Wednesday.
Riding on Tuesday’s 52-week high, Oracle’s bold projections around its AI cloud infrastructure also made the S&P 500 soar to its highest on Wednesday. While not enough to keep all stocks afloat, several tech stocks, like Nvidia, gained on the back of Oracle’s growth.
Oracle expects its cloud infrastructure revenue to hit $114 billion by 2029, putting it on par with industry stalwarts like Google Cloud, Amazon Web Services, and Microsoft Azure.
Citi upgraded Oracle to Buy from Neutral and increased the price target to $410 from $240 after “an historic Q1 bookings quarter.” The “surprising” bookings, of more than $330 billion, have increased analysts’ confidence in the durability and profitability of Oracle’s AI business, as shared in a post-earnings note, as noted at The Fly.
Today, the billion-dollar tech giant signed a $300 billion computing power deal with OpenAI, making its CTO Larry Ellison the world’s richest man, surpassing Elon Musk within a single day.
Related: Investors write off Oracle earnings miss as management promises stratospheric growth
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