This week saw the Nasdaq rack up a 2.4% increase, amassing a 12% growth in three weeks - its strongest performance since the beginning of the Covid-19 era when stay-at-home orders gave tech stocks a boost. Amid a relatively still week due to Thanksgiving, all eyes will be on Nvidia's earnings report.
Tech investors are in high spirits as Thanksgiving approaches, with the Nasdaq registering a rise of 2.4% this week - its strongest rally over a three-week period since April 2020. Intel stocks saw an increase of 13%, taking its gains since October 26 to 35% after the company reported sales and profits that exceeded expectations. Mizuho Securities upgraded their rating of Intel to "buy" citing the renewed emphasis on its data center business and a favorable customer pipeline. The semiconductor sector will be a major focus for tech investors next week as Nvidia is set to report its earnings. Nvidia has seen a rise of 22% in the last three weeks and its gains for the year stand at 237%, the highest among S&P 500 companies. Nvidia's GPUs make it one of the biggest beneficiaries of the AI-driven boom. Analysts expect the company's third-quarter revenue to increase by more than 170% and the number for the fourth quarter to rise close to 200%. The broader market received a lift this week due to mild U.S. inflation numbers. The Consumer Price Index was flat from the month before, with experts predicting a 0.1% increase. This adds to the likelihood that the Federal Reserve's rate increasing campaign has now come to a halt. Tesla emerged as the other major large-cap gainer, with stocks up 9.2%. This was despite CEO Elon Musk agreeing with a post that accused Jewish communities of directing hate towards white people. The White House denounced this statement as an "abhorrent promotion of Antisemitic and racist hate". EMJ Capital founder Eric Jackson is optimistic regarding Nvidia's earnings report. He said in an interview on CNBC's "Closing Bell" that the market is in the early stages of a rebound, which is attributed to the end of the Federal Reserve rate hikes.
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