© Reuters. FILE PHOTO: Traders work on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., October 27, 2023. REUTERS/Brendan McDermid/File Photo
By Noel Randewich and Shristi Achar A
(Reuters) – The Nasdaq surged on Thursday, with Alphabet (NASDAQ:) and Advanced Micro Devices (NASDAQ:) sparking a megacap rally on fresh optimism about artificial intelligence.
Shares of Alphabet jumped over 5% as analysts cheered the launch of the Google-parent’s newest AI model, while AMD soared more than 9% after the company estimated the potential market for its data center AI chips could reach $45 billion this year.
Other heavyweight tech-related stocks also gained, with Nvidia (NASDAQ:) and Amazon (NASDAQ:) climbing nearly 2%, Meta Platforms (NASDAQ:) rising 2.8% and Apple (NASDAQ:) up about 1%.
The Philadelphia semiconductor index jumped 2.4%, bringing its 2023 gain to 47%, much of that fueled by bets about the future of AI.
“Today it’s an AMD-Google rally. There’s a contagion effect across the market. Everyone wants to get on the bandwagon,” said Jay Hatfield, CEO of Infrastructure Capital Management in New York.
“We’re kind of in this weird market, a tag-team…
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