Nvidia, Advanced Micro Devices, Intel jump as chip stocks lead S&P 500

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Nvidia (NASDAQ:NVDA), Advanced Micro Devices (NASDAQ:AMD) and Intel (NASDAQ:INTC) were among the top gainers in the S&P 500, a day after Nvidia’s Chief Executive Jensen Huang said the company would consider using Intel’s (INTC) foundry.

If a deal is done between Nvidia and Intel to become a customer for the chip giant’s upcoming foundry push, it would build on an existing relationship, Huang said at a press event on Wednesday.

Huang added that any potential use of Intel (INTC) as a foundry is not likely to happen anytime soon, however.

Nvidia (NVDA) shares rose nearly 8.5% to $278.44, while Intel (INTC) gained more than 5% to $50.79.

Advanced Micro Devices (AMD) shares rose in sympathy, tacking on slightly more than 5% to $119.81.

Other chip stocks, such as Broadcom (AVGO), Micron (MU) and Texas Instruments (TXN) were all up 1% or more.

The iShares Semiconductor ETF (SOXX), which is comprised of the aforementioned chipmakers, was also higher on Thursday, gaining nearly 4%.

The S&P 500 rose 0.8% in mid-day trading on back of the chip strength, though the broader index has fallen 6.3% year-to-date.

On Tuesday, unveiled a number of new products, including the Hopper H100 GPU with 80 billion transistors, based off the company’s new Hopper architecture.

Following the Hopper H100 unveil, Huang showed off the DGX H100 system, which will let the company’s customers create language models, recommender systems, as well as use in healthcare and drug research and climate science. The DGX H100 uses 8 H100 GPUs per system and is connected with the Nvidia NVLink.

In addition to the Hopper architecture, Nvidia (NVDA) showed off its first Arm Neoverse-based discrete data center CPU, known as the Grace CPU Superchip, as it looks to further entrench itself in the data center space and compete with Intel and AMD.

In February, Bank of America said Nvidia (NVDA) and AMD (AMD) were likely to continuing reaping the benefits of the upgrade cycle in the graphics chip market, adding that the second-half of the year should see stronger growth, as supply and mix improve.

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