In the midst of stock market highs, chip-related stocks are driving growth.
Chip stocks like Corning, Super Micro Computer, Intel, and Advanced Micro Devices led the S&P 500 this past Monday, which rose another 0.1% amidst its recent growth, as shown in the chart below. In particular, Corning jumped by 12% on Monday after its guidance on Q2 sales increased from $3.4 billion to $3.6 billion.
Corning’s recent success is an indication that the demand for generative artificial intelligence is at a high. Corning makes glass that is used for optical fiber, allowing it to provide optical connectivity products through which networks run generative AI. The company claims to cut AI installation costs. Thus, their surge in sales indicates that more companies than ever are seeking to implement AI.
Technological innovation and its subsequent transformation of the economy can be unpredictable and volatile processes. However, the recent surge of chip stocks suggests a profound change is under way.
Source: Pitcher, WSJ; Asplund, Nasdaq; Bartlett, CNBC
Victoria Freeman is a Collegiate Associate at the Manhattan Institute
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