AI Trading Leads U.S. Stock Market Rebound as Nvidia Posts 10th Consecutive Gain
Nvidia's shares rose nearly 19% over ten days, marking its longest winning streak since November 14, 2023. AMD also recorded a ten-day winning streak, surging more than 30%, its longest since 2005. Analysts note that the uncertainty previously overshadowing AI trading is dissipating, and investor confidence is rekindling. Institutions remain bullish on the mid-term prospects for semiconductors, predicting that the rise of agent AI and embodied AI will continue to drive earnings growth for chipmakers
Capital is flowing back into the AI sector, with chip stocks rallying collectively as institutions express optimism about the mid-term outlook for semiconductors.
On Tuesday, April 14, Nvidia rose nearly 4%, posting its 10th consecutive daily gain and setting a record for the longest winning streak since November 14, 2023, with a cumulative increase of 18.97%.
Meanwhile, AMD also achieved a 10-day winning streak on the same day, marking its longest such period since May 2005, with a cumulative gain of 30.11%.
Analysts believe the collective rally in chip stocks signals that the uncertainty previously hanging over AI trading is fading, and investor confidence is being restored.
(Basket of AI Leader Stocks from Goldman Sachs)
Gil Luria, Managing Director at D.A. Davidson, stated that the market is becoming "increasingly optimistic" about the trajectory of AI development. As related investments extend into next year, capital is flowing toward semiconductor companies poised to benefit from data center construction.
Investors Shift from Defensive to Offensive, Returning to the AI Track
For several months prior, Nvidia's stock price had been stuck in a stalemate. Investors temporarily rotated into defensive sectors such as consumer staples and sought other AI-related targets with higher growth potential.
Jamie Meyers, a securities analyst at Laffer Tengler, noted that at the beginning of the year, investors significantly reduced their holdings in winners amid concerns about a cooling in tech trades, but are now "returning to reality." Meyers added:
(AI-related stocks) The growth is right there.
He also pointed out that Nvidia recently lacked obvious catalysts because its product roadmap is "well known to the market," leaving little room for surprises.
However, Jamie Meyers believes that the company's frequent updates and iterations themselves validate its "remarkable momentum for growth."
Andrew Rocco of Zacks Investment Research stated that from a mid-term perspective, Nvidia, AMD, and Intel will all benefit from the continued expansion of AI infrastructure.
He further added that the rise of agent AI and embodied AI will further drive earnings growth for chipmakers, as these applications will rely on massive computing power.
