Financial Analyst/Content Writer, RADEX MARKETS
Lawrence J. came from a strong technical and engineering background before pivoting into a more financial role later on in his career. Always interested in international finance, Lawrence is experienced in both traditional markets as well as the emerging crypto markets. He now serves as the financial writer for RADEX MARKETS.
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The technology sector remains the load-bearing foundation of US equities, lifting both the S&P 500 and Nasdaq-100 to new all-time highs yesterday. It is the first time the SPX has established a fresh record since mid-August, while the NDX has now hit three consecutive back-to-back highs. A number of developments saw specific stocks push higher, contributing to the wider sense of optimism that continues to pervade the AI trade. Google (GOOG) came out with the biggest story of the day, revealing a $4.3 billion deal with Constellation Energy (CEG) to secure 3.6 gigawatts of power, a quarter of which will be sourced from upgraded nuclear power plants from across the United States. Constellation Energy now has the revenue certainty to perform improvement works on 11 different reactors, which include modernised turbines, steam generators, and digital control systems; the company surged 12% following the announcement. The additional power will fuel Google’s ravenous artificial intelligence data centre network, which requires a heavy, uninterrupted supply of electricity to meet its energy demands.
Further afield, SpaceX (SPCX) expanded its ties with Nvidia (NVDA) on Tuesday by announcing a deal to purchase $40 billion worth of chips for its Colossus data centre. The space-faring company is rapidly expanding beyond rockets, with plans to operate massive GPU farms both on the ground and in orbit. The Starmind satellite platform will be designed to interface directly with the Starlink infrastructure already in place. Such projects illustrate well the vast sums of money still waiting to be deployed, as well as the insatiable appetite for new chips. SpaceX is finally catching some of the AI tailwinds, pushing share prices up 15% over the last three sessions. As for Nvidia, the company is rapidly approaching a $6 trillion market cap, the first to ever do so, and will hit the historic milestone at roughly $250 per share – a mere 4% gain from current prices.
Advanced Micro Devices (AMD) also saw its time in the spotlight yesterday after CEO Lisa Su announced that the company will significantly ramp up chip production throughout 2027 to meet the incessant industry demand. AMD has been courting suppliers such as TSMC and Foxconn to ensure the chipmaker has adequate wafer capacity for its new AI hardware offerings, while markets in general have been waking up to the importance of high-performance server CPUs, for which the company is well known. AMD closed the session 2.8% higher yesterday and is set to open at a new record high later today. Analysts at Citi recently raised price targets to $800 per share from $650 currently.
In the same vein, Marvell Technology (MRVL) raised its annual revenue guidance for 2028, substantially revising the previous estimate of $18 billion to $20 billion. The company is heavily involved in AI infrastructure and pumped 6% after the revision, adding to the 240% gain achieved so far this year. The relentless drive in the technology sector is all the more impressive given the macroeconomic drop against which such developments are occurring. US treasury yields are still sitting at multi-decade highs, with the 10-year note at 5.31% and the 30-year at 5.69%; Brent Crude refuses to dip below $100 per barrel; Iranian peace prospects remain tenuous at best; interest rates are set to rise for the foreseeable future. Despite everything, earnings are robust and show no signs of abating. The AI trade is alive and well.
About the Author
Lawrence J. came from a strong technical and engineering background before pivoting into a more financial role later on in his career. Always interested in international finance, Lawrence is experienced in both traditional markets as well as the emerging crypto markets. He now serves as the financial writer for RADEX MARKETS.
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