drive AI-related gains on CEO Jensen Huang’s support

10/09 U.S. stocks drive AI-related gains on CEO Jensen Huang’s support

The U.S. stock market pushed the index higher, leaving behind the AI-related monetization controversy, which was highlighted the previous day, and thanks to the remarks of CEO Jensen Hwang (+2.20%). Of course, AI-related stocks are clearly strong in CEO Jensen Hwang’s remarks, which have been going on in the past, but have put the AI monetization controversy and bubble concerns to rest on the previous day. The release of the FOMC minutes, which included that Fed members are more concerned about high prices, has led to a strong dollar and a rise in government bond rates, but the stock market continues to rise paying more attention to AI companies (-0.003%, Nasdaq +1.12%, S&P 500 +0.58% and Russell 2000 +1.04% and Philadelphia Semiconductor Index +3.40%)

• Variants: Jensen Huang Speaks, FOMC Minutes

CEO Nvidia Jensen Huang emphasized that AI computing demand has surged “significantly” over the past six months amid the recent AI bubble controversy, due to “two exponential increases” in both demand and computing power usage. It also says demand for Blackwell is “really, really high” and defines the AI era as “the beginning of a new build and an industrial revolution.” In addition, while AMD is confident that it will be difficult to keep up with Nvidia’s AI performance levels, it also mentions Elon Musk’s investments in xAI and Coreweave as his favorite investments, suggesting a wide range of investments in strategic partnerships and future areas (energy infrastructure, quantum computing, etc.).

It warns strongly that the U.S. is not far ahead of China in the AI competition, and that China is moving faster in building the power infrastructure needed to support AI. In addition, the U.S. argues that data centers must generate their own power through natural gas or nuclear power in order not to fall behind in the AI competition. In addition, Nvidia has already revealed in its financial guidance that it assumes “zero” sales in China, suggesting that it is managing geopolitical risks. Finally, it is recommended to go to a technology school, predicting that the growth of AI will generate huge demand for skilled technical jobs such as electricians and plumbers needed to build and maintain data centers. The recent AI bubble controversy was alleviated by Jensen Huang’s remarks, and investors cheered and bought back into AI-related stocks.

Meanwhile, the Fed cut interest rates amid the judgment that the risk of downside to the job market has increased, with employment indicators in July and August weaker than expected through the release of the FOMC minutes. In particular, it suggests that it is a risk management cut that preemptively responds to the risk of hindering the achievement of employment goals. However, inflation (2.7% PCE, 2.9%) still exceeds the target (2%) and emphasizes that the risk of inflation is still high due to the impact of tariffs. Nevertheless, most members of the committee evaluate that the risk balance is leaning toward slower employment and agree to cut interest rates

Economic growth slowed in the first half of the year, but it reported some signs of improvement in consumption and IT investment. It noted that financial markets have shown signs of easing, with stock prices approaching their peak on the back of expectations for a policy rate cut and strong corporate earnings. Regarding future monetary policy, almost all members have announced that further easing (rate cuts) may be appropriate by the end of the year, even after the current cut. However, the commissioners make it clear that policy is not a predetermined path, citing the importance of a balanced approach to future data and prices (upside risk) and employment (downside risk). The related announcement highlights inflationary jitters, with Treasury yields expanding their gains and the dollar strengthening. However, the stock market continues to rise with a greater focus on AI

• Featured Stocks: AI, Semiconductor, Space Development Rise Vs. Automobiles, Quantum Computers Fall

Semiconductors: Nvidia Rises On Jensen Huang’s Positive Comments On Demand
Nvidia (+2.20%) rose after CEO Jensen Huang said demand for AI computing surged “significantly” over the past six months and demand for Blackwell was “really, really high.” In particular, the positive impact was that the company raised expectations for the AI industry despite the AI bubble and companies’ concerns about monetization. AMD (+11.37%) recently raised its investment opinion, saying that its partnership with OpenAI could accelerate its future growth. TSMC (+3.57%) rose ahead of its monthly sales announcement on the 9th. Morgan Stanley said that it is expected to raise its guidance on the basis of strong demand for AI semiconductors and that it should buy them ahead of its earnings announcement on the 16th. In addition, the company claims that there is a possibility of a wafer price hike in 2026, which will reflect TSMC’s technological edge and strong bargaining power. Micron (+5.84%) rose along with Broadcom (+2.70%) on the back of Jensen Huang’s remarks. Intel (+0.70%) rose on the back of HSBC’s downward revision of its investment opinion. The Philadelphia Semiconductor Index rose 3.40%

AI And More: Nvidia Investments And Partners Rise
Coreweave (+8.65%) rose after CEO Jensen Huang mentioned that one of his favorite investments was Coreweave and regrets not investing more. Most of Nvidia’s investment and partners also rose, including Liquor Pharmaceuticals (+16.44%), Weiride (+12.04%), Nevis (+3.65%), Spire Global (+4.77%), SoundhoundAI (+3.74%) and Aurora Innovation (+3.33%). Dell (+9.05%) continued to rise following the previous day’s earnings outlook upgrade. Most AI-related companies also rose, with Marvell Tech (+6.36%), Super Microcomputer (+6.56%), and Arista Network (+8.31%) also showing strong performance.

Cars: Most Automakers Fall Apart From Tesla
Tesla (+1.29%) fell on the announcement that the price was still high despite the launch of new Model Y and Model 3 cars, and that this vehicle model was not helpful for slowing sales, but it rebounded on the grounds that it confirmed a $20 billion investment in xAI and said it wanted to join Jensen Huang’s Musk. In addition, expectations for an FSD upgrade announced next week also contributed to the buying trend. Ford (-1.51%) was the former