Shares of technology companies rose as fears about the sustainability and implications of the artificial-intelligence boom diminished somewhat.
Shares of Monday.com slid as the project-management software company's growth outlook failed to quell concerns about the potential disruption of its business by AI competition.
"People are really starting to question whether the high levels of expenditure, whether the capex has been fruitful or not," said J.D. Joyce, president of Houston financial advisory Joyce Wealth Management.
Joyce said advanced chip maker Nvidia is playing the role that Intel played for investors during the Dot-com boom: the ubiquitous supplier to the myriad companies competing to dominate the field. For that reason, Joyce said, fears stirred by Microsoft and others in the latest quarter may prove overblown. "My guess is when Nvidia reports" at the end of the earnings season, "it's going to show they continue to thrive."
Shares of Kyndryl Holdings plunged after the company's chief financial officer left amid a review of accounting practices and a Securities and Exchange Commission probe.
STMicroelectronics shares rose after the European chip maker struck a deal with Amazon.com's cloud-computing unit, a major breakthrough in efforts to supply AI infrastructure builders.
NVIDIA Corporation is the world leader in the design, development, and marketing of programmable graphics processors. The group also develops associated software. Net sales break down by family of products as follows:
- computing and networking solutions (89%): data center platforms and infrastructure, Ethernet interconnect solutions, high-performance computing solutions, platforms and solutions for autonomous and intelligent vehicles, solutions for enterprise artificial intelligence infrastructure, crypto-currency mining processors, embedded computer boards for robotics, teaching, learning and artificial intelligence development, etc.;
- graphics processors (11%): for PCs, game consoles, video game streaming platforms, workstations, etc. (GeForce, NVIDIA RTX, Quadro brands, etc.). The group also offers laptops, desktops, gaming computers, computer peripherals (monitors, mice, joysticks, remote controls, etc.), software for visual and virtual computing, platforms for automotive infotainment systems and cloud collaboration platforms.
Net sales break down by industry between data storage (88.3%), gaming (8.7%), professional visualization (1.4%), automotive (1.3%) and other (0.3%).
Net sales are distributed geographically as follows: the United States (46.9%), Singapore (18.2%), Taiwan (15.8%), China and Hong Kong (13.1%) and other (6%).
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