Remember when your friend who bought NVIDIA at $20 wouldn’t shut up about it? Well, they’re probably texting you right now because chip stocks are back to doing what they do best: making everyone else feel like they missed the boat.
Here’s what’s happening: Tech stocks decided to wake up from their Monday blues, and surprise surprise, it’s the semiconductor gang leading the charge. NVIDIA jumped after Foxconn (you know, the people who make your iPhone) reported profits up 17% and basically said “AI demand is going to be bonkers through 2026.” When your supplier is this confident, that’s usually a good sign.
AMD wasn’t about to let NVIDIA have all the fun. They’re up over 5% after hosting what’s essentially a corporate pep rally (they call it “Financial Analyst Day”) where they laid out their master plan for world domination via AI and data centers. Classic AMD move – always the scrappy underdog with big dreams.
But here’s where it gets interesting: while the chip bros are partying, Palantir is sitting in the corner down 2%, slowly drifting toward its 50-day moving average like that friend who leaves the party early. No drama, no headlines – just a quiet test of whether the stock can hold its ground at $180.
The broader market is giving off some serious “we might actually rally” vibes. The VIX (aka the fear gauge) is bouncing around 17, which traders treat like a “buy zone” traffic light. If it drops below 17, that’s usually when people start feeling frisky about stocks again.
Here’s the nerdy but important part: 55% of S&P 500 stocks are now trading above their 50-day moving averages. That might sound like financial gibberish, but it’s actually a big deal. When that number hits 60%, combined with the VIX chilling out, it usually means the market has some real momentum behind it.
The upgrade/downgrade circus was in full swing too. AT&T got a thumbs up with analysts basically saying “hey, this beaten-down stock might actually grow again.” Meanwhile, Bath & Body Works got the cold shoulder – apparently there’s only so much vanilla candle demand in the world.
What’s really wild is that it’s not just the usual suspects getting love. Speculative stuff like nuclear stocks, quantum computing, and those flying car companies (eVTOL, if you want to sound fancy) are starting to attract the “fast money” crowd again. When the risky bets start looking attractive, you know sentiment is shifting.
The bottom line? Tech leadership is back, but this time it’s bringing friends. Market breadth is improving, which is finance-speak for “more stocks are participating in the party.” That’s usually healthier than just watching five mega-cap stocks carry the entire market on their backs.
Will this rally stick? Nobody knows – that’s why they call it a market. But when chip stocks start flexing and the fear gauge starts relaxing, it’s usually worth paying attention. Just maybe don’t text your NVIDIA-owning friend back right away. Let them have their moment.