Nvidia Unveils New PC Chip, Sparks Reshuffling in Chipmaker Stocks
Nvidia announced a new processor for personal computers, sending its stock climbing and triggering major moves across the semiconductor industry. Competitors like Intel and Qualcomm fell sharply while chip suppliers Arm surged.
Nvidia Launches New PC Chip
Nvidia shares climbed 2.1% in the premarket after the company unveiled a new processor for personal computers. CEO Jensen Huang said in a keynote that "This reinvention of the computer is as big of a deal as the reinvention of the phone into what we now know as the smartphone," and also said AI will run across all the new computers.
Market Reaction and Winners
Stock futures advanced on Monday as Wall Street looked to kick off June on a strong note, and Nvidia led tech higher following the launch of a new chip for PCs. Futures tied to the Dow Jones Industrial Average added 257 points, or 0.5%, while S&P 500 and Nasdaq-100 futures rose 0.3% and 0.2%, respectively. Dell Technologies and HP Inc followed Nvidia higher, rising more than 1% and about 4%, respectively, with Arm, whose technology was used by Nvidia to develop the new chip, surging 14.5%.
Rivals Under Pressure
As Nvidia rose, its chipmaking competitors fell sharply, with Qualcomm tumbling 9.5%, Intel shedding more than 6.5%, and Advanced Micro Devices falling off more than 4%. Intel, which for years dominated the PC chip market, fell more than 6%.
Strong May Performance Sets Stage
Stocks wrapped up a strong May, with all three major indexes posting solid gains. The tech-heavy Nasdaq Composite led the advance, up more than 8% for the month, while the S&P 500 gained about 5% and the Dow Jones Industrial Average added nearly 3%.