Business, Finance & Tech
AI Boom Lifts Chip Stocks as Big Tech Slumps
The artificial intelligence boom continues to drive the stock market, but the rally is increasingly concentrated in semiconductor companies while several of the biggest names in technology struggle.
Nvidia shares surged 9% Thursday after the chipmaker reported strong earnings, including a doubling of sales and a bullish outlook for continued growth. The gains helped lift the broader market, with the Nasdaq up 1.57% in midafternoon trading and the S&P 500 up 0.82%.
Other semiconductor companies are also benefiting from the massive investment in artificial intelligence infrastructure. Companies producing the chips and hardware needed to power AI data centers have become some of the market’s biggest winners.
The S&P 500 has gained 13% this year, adding roughly $7.6 trillion in market value. Semiconductor stocks have accounted for about 37% of those gains, according to JonesTrading.
Micron Technology has gained 220% over the past year and surpassed a $1 trillion market value in May. In South Korea, major chipmakers SK Hynix and Samsung have helped push the benchmark Kospi index more than 120% higher this year.
Meanwhile, some of the technology industry's biggest companies have not enjoyed the same momentum.
Microsoft shares are down about 6% from their record high last October. Alphabet and Amazon remain below recent peaks, while Apple has fallen nearly 7% from a record high reached earlier this month.
The concentration of market gains in semiconductor stocks is raising concerns about what could happen if enthusiasm for AI spending begins to fade.
Analysts have compared the current AI trade to the technology mania of the late 1990s. Investors have also seen how quickly semiconductor stocks can fall when expectations aren't met. Broadcom shares dropped nearly 20% over two days in June after its forecast for third-quarter chip revenue came in slightly below expectations.
Market strategists say that doesn't necessarily mean the AI boom is about to collapse, but investors are increasingly watching for signs that companies could slow their enormous spending on AI infrastructure.
For now, chipmakers remain the clear winners. But their growing influence means any major pullback in the semiconductor sector could have an outsized impact on the broader stock market.
By: CNN Newsource
August 27, 2026
Latest Instagram Posts
More than 2,000 rescues — and the year isn’t over yet. Santa Clemente lifeguards are keeping a close eye on the Pacific as they prepare for potentially stronger surf and bigger waves this winter. From Tower Zero, lifeguards monitor the entire beach and use cameras to spot trouble in the water. One of their biggest concerns? Rip currents, which can pull swimmers far from shore. With more rescues already this year than all of last year, lifeguards say the key is simple: be ready before someone needs help. #SanClemente #Lifeguards #OceanSafety #RipCurrents #BeachSafety SurfSafety SouthernCalifornia PacificOcean NBCPalmSprings
The Salton Sea is at a crossroads. From a massive restoration project bringing habitat back to the shoreline, to a potential lithium boom, and the new Salton Sea Conservancy, its future is being shaped right now. We’re taking you behind the scenes to explore what comes next for the Salton Sea. In our newest 30-minute report, go behind-the-scenes with the state’s conservation team, learn about updated timlines from lithium executives, and hear how former political leaders paved the way. Restoring the Salton Sea: Progress, Promise and Pressure. Streaming this Sunday on NBC Palm Springs. #saltonsea #lithiumvalley #saltonseaconservancy #marybono
A few PSUSD students will get a unique opportunity to learn more about careers in Aviation at the Palm Springs Air Museum with the districts launch of their Aviation and Aeronautics Career Exploration Program. Be sure to stay tuned with NBC Palm Springs to learn all about this. #palmspringsairmuseum #palmsprings #aviationeducation #psusd #backtoschool
Escape to the mountains without spending a fortune. Looking for a unique getaway? Hicksville Pines Bud & Breakfast in Idyllwild offers themed rooms, retro arcade games, outdoor activities, arts and crafts, nightly camp movies and plenty of opportunities to relax and enjoy the mountain air. And there’s a special deal for NBC Palm Springs viewers: 15% off your stay 20% off additional nights when available Use code NBCPalmSprings at checkout The adults-only property also offers a relaxed 420-friendly atmosphere and complimentary breakfast, including a memorable cannabis-leaf-shaped waffle. Would you stay here for a mountain getaway? #NBCPalmSprings #Idyllwild #HicksvillePines #MountainGetaway #CaliforniaGetaway WeekendGetaway CoachellaValley TravelCalifornia
☕️ Social Time with Thalia & Jerry. What’s your go-to breakfast?
A new Sand Cat kitten is receiving its first in-hospital wellness exam. Our Maria Noble Valdez was able to go into the hospital and get a unique behind-the-scenes look at why this is so important. Be sure to tune in at 5 and 6 pm tonight or visit nbcpalmsprings.com to learn more. #thelivingdesert #wildlifeconservation #sandcat #coachellavalley #palmdesert
Social Time with Thalia and Jerry. Does Sept. 1st make you think of fall, or not quite yet?
A judge has officially dropped a second degree murder charge against former Silvercrest CEO William Frank Rodriguez due to insufficient evidence. Rodriguez now faces a felony hit and run charge and driving under a suspended license. Rodriguez is accused of killing 60-year old Cathedral City resident Christina Barrington in a hit and run crash back in October of 2024. Tune in to our evening newscasts as our @newsbyalondra shares details on the preliminary hearing in this case.
It’s been one month since a car crashed into the Burger Box restaurant in Indio. Owner Anthony Ruiz says a lot has been happening behind the scenes since then. With some new, big developments over the past week, Ruiz spoke with NBC Palm Springs’s @maria_nvtv to discuss rebuilding, new details about the investigation taking place, and how the owners are feeling now. Watch the full on update on NBC Palm Springs at 5 & 6, and visit nbcpalmsprings.com to hear where things stand, what’s next, and how the Burger Box family is reflecting on this incident as they navigate their new reality. #BurgerBox #update #indio #localbusiness #rebuilding
Social time with Thalia and Jerry and Hayden