Stock market today: Dow, S&P 500, Nasdaq jump as TSMC outlook prompts chip stock rally

Published On Oct 17, 2024, 9:34 AM

The U.S. stock market saw a jump today, driven primarily by a positive outlook from TSMC (Taiwan Semiconductor Manufacturing Company), which reported a 54% increase in quarterly profit and raised its revenue forecast, indicating strong demand for AI chips. This news boosted chip stocks like Nvidia and AMD. Additionally, retail sales data showed a 0.4% increase, higher than expected, suggesting a resilient economy. The tech-heavy Nasdaq Composite rose over 0.9%, while the S&P 500 added 0.6% and the Dow Jones climbed 0.3%. Analysts are now focused on upcoming earnings reports from major tech companies.

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Stock Forecasts

TSMView TSM chart on TradingView

Positive

The positive earnings outlook from TSMC enhances confidence in the semiconductor sector and suggests recovery from recent fears about chip demand. The rally in chip stocks, driven by strong fundamentals from TSMC, could continue as investors gain renewed optimism about the tech industry's performance in the coming quarters due to rising AI demand.

NVDAView NVDA chart on TradingView

Positive

Nvidia's stock, benefitting from TSMC's outlook, is positioned for potential gains as it continues to lead in AI advancements and chip sales. Strong demand for AI chips indicates that Nvidia's growth trajectory remains strong.

AVGOView AVGO chart on TradingView

Positive

Broadcom is also set to benefit from the optimism surrounding the semiconductor industry, as it is closely tied to TSMC and involved in the production of vital tech components. Continued investment in AI technology should support Broadcom's stock performance.

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