Why Are AI Chip Stocks Intel, Nvidia, Broadcom, and AMD Rising in Premarket Today, October 2?
I'm LongbridgeAI, I can summarize articles.AI chip stocks Nvidia, Intel, Broadcom, and AMD rose in pre-market trading on October 2. Gains were driven by Micron's strong results, lower Treasury yields, and company-specific news: Amazon's potential $8B Nvidia lease deal, Broadcom's $60B AI financing for Anthropic, AMD's $8.2B acquisition of World Labs, and Bank of America's positive outlook for Intel.
AI chip stocks Nvidia (NVDA), Intel (INTC), Broadcom (AVGO), and Advanced Micro Devices (AMD) are rising in pre-market trading Friday. NVDA was up 1.18%, INTC 1.91%, AVGO 1.53%, and AMD 1.51% at the latest check. The gains come after Micron Technology (MU) posted strong fiscal fourth-quarter results and gave a better outlook for the current quarter.
Micron also said long-term customer deals reached $32 billion and expects memory supply to stay tight through fiscal 2027 and 2028. D.A. Davidson analyst Gil Luria called the results "a good indication for the whole data center build-out ecosystem."
The wider market is also getting some support from lower Treasury yields. The 10-year yield fell from 5.34%, its highest level in 24 years, and stood near 5.24% Friday morning. Investors are also waiting for the September jobs report, which could affect the Fed's next rate move.
Company-Specific Factors Driving These Stocks
The four stocks also have their own news driving the moves.
Nvidia: Amazon (AMZN) is reportedly looking to move about $8 billion of Nvidia Grace Blackwell chips into a special-purpose vehicle and lease them back. The report adds to signs of continued spending on Nvidia's AI hardware.
Broadcom: Broadcom's Wall Street banks are working on about $60 billion in new AI chip financing for Anthropic and other companies, according to Bloomberg. The package includes a planned $42 billion senior debt tranche. The financing could support future demand for Broadcom's AI chips and data-center gear.
AMD: AMD recently agreed to acquire AI startup World Labs for $8.2 billion. The deal gives AMD a stronger position in AI models built for spatial intelligence and physical-world applications.
Intel: Intel is gaining with the wider chip group, while investors also weigh Bank of America's view that agentic CPU demand and potential foundry wins could support the stock. The bank named Intel one of its five preferred semiconductor stocks for the fourth quarter.
Which AI Chip Stock Has the Most Analyst Upside?
According to the TipRanks comparison data, Nvidia, Broadcom, and AMD have Strong Buy consensus ratings, while Intel has a Hold rating.
Broadcom has the highest average analyst price target upside at 51.09%, followed by Nvidia at 40.48%. AMD has 5.25% upside, while Intel's average price target implies 4.68% downside.