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BUZZ-Chip stocks outperform broader markets on signs of strong AI spend

Reuters · 04/25 14:35

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BUZZ-Chip stocks outperform broader markets on signs of strong AI spend

** Philadelphia Semiconductor Index .SOX rises 0.6%, bucking the broader market trend as signs of increasing investments in AI spurred bets of higher demand for chips that support the technology

** Broadly, Meta Platforms META.O drops 13%, weighing on tech peers and pulling the S&P 500 .SPX 1.5% lower after the Instagram parent forecast higher AI expenses and lighter-than-expected revenue

** "Semis are broadly stronger, buoyed by META's capex spend (at least $70 bln over 2 years)" - J.P.Morgan traders'

** AI bellwether Nvidia NVDA.O firms 2%, while Broadcom AVGO.O, Marvell Technology MRVL.O and Lam Research LRCX.O advance between 2.6% and 4%

** Alphabet GOOGL.O and Microsoft MSFT.O, slated to report quarterly results after markets close, said earlier this year they expected AI costs to rise

** Semiconductor-testing equipment maker Teradyne TER.O climbs 6.7% after upbeat forecast

** SOX up 10% YTD on AI boost compared to 5% gain in SPX

(Reporting by Medha Singh)

((medha.singh@thomsonreuters.com))

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