Technology Stocks Soar as Semiconductor Manufacturer Predicts Clearing of Inventory Glut
- Wednesday, October 16, 2024
Shares of technology companies experienced a significant surge following an optimistic forecast from the world's largest contract semiconductor manufacturing company. This propelled the Nasdaq 100 to achieve a record-breaking closing high.
Taiwan Semiconductor Manufacturing announced that the widespread inventory glut that negatively impacted all chip makers in 2023 seemed to have finally cleared. Consequently, the Nasdaq 100, which comprises the most prominent technology stocks traded on the Nasdaq market, reached its highest level ever, closing at an impressive 16,982. Moreover, the iShares Semiconductor exchange-traded fund, tracking the PHLX SOXX index of semiconductor firms, witnessed a substantial increase of over 3%, now accumulating a year-to-date gain of more than 4%.
Furthermore, Nvidia shares have climbed nearly 19% since the beginning of the year. If this rate continues, Nvidia, renowned for producing AI-supporting chips, is on track to become the world's largest company by market capitalization by the end of the year. This would occur even if larger competitors such as Apple and Microsoft sustain their current, albeit slower, pace of growth.
All Rights Reserved © 2024
Post a comment