AI Semiconductors Lead, Stock Market Rises Across the Board

Despite the Dow Jones Industrial Average and Russell 2000 turning negative late in the session, the Nasdaq led the market, driving the overall upward trend.

Semiconductor stocks, centered around CPUs like AMD, Intel, and Arm, showed strength.

The artificial intelligence (AI) industry is still considered to be in its early-to-mid stages, with ample room for infrastructure expansion such, as data centers.

On this day, Micron Technology rose 2.77%, and AMD rose 2.24%, showing broad gains among major semiconductor companies.

The decline in oil prices and interest rates from their peaks was a major factor driving the overall stock market rally.

This surge is analyzed as a reflection of expectations for lower interest rates and Trump's stimulus policies.

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After confirming support at the moving average, it is moving towards its previous high, suggesting that a buying perspective is valid when a dip occurs in the future.

Driven by the surge in artificial intelligence (AI)-related stocks, the S&P 500 index rose approximately 1%.

Former President Trump's remarks and the mention of potential diplomatic solutions in the Middle East led to falling oil prices and lower bond yields, contributing to the market's recovery.

Due to strong investor interest in artificial intelligence (AI), AMD's market capitalization surpassed $1 trillion during trading, becoming the 14th U.S. company to reach this milestone.

News of infrastructure investments by major AI startups like Anthropic and OpenAI reinforces the outlook for continued AI infrastructure investment.

As AI agent services proliferate, demand for data center CPUs has surged, leading to simultaneous gains for major CPU manufacturers including Intel, Arm, and AMD.

As a result, Ciena's investment rating was upgraded and its stock price rose, with other optical network-related stocks such as Corent and Lumentum also showing strength.

The growth rate of corporate earnings per share (EPS) is expected to slow rather than plummet, with an 11% year-over-year growth projected for 2027.

After 2028, it anticipates entering a new transition phase driven by AI technology's productivity improvements, setting S&P 500 EPS targets of approximately 7,900 for 2027 and 8,700 for 2028.

In the short term, energy prices and interest rates act as risk factors for EPS forecasts, while in the long term, artificial intelligence (AI) is expected to be a major variable determining multiples and EPS.

Only 17% of cases showed the index rising when an interest rate hike cycle began.

However, from a long-term perspective of 6 to 12 months, the S&P 500 index's performance improved by over 6%, and the probability of an increase also rose from 67% to 83%.

With other major currencies all strengthening, Japan's slight interest rate hike alone is likely to put downward pressure on the yen.

Based on this outlook, a long position (buy) strategy for the yen against the euro is suggested to be advantageous.

This alleviated investor concerns about Meta's spending on its AI division and demonstrated the company's AI monetization strategy.

Muse's proven ability to successfully perform multi-stage tasks served as a major driving force behind Meta's stock price increase.

The latest AI tool 'E7' bundle proposes a revenue model of $99 per user per month, and synergistic effects with AI tools within the M365 platform are expected.

Microsoft's Copilot has already achieved significant results in a relatively short period since its launch in 2023.

Companies prioritize actual productivity improvements and tangible value creation over simple product upgrades when adopting AI, and Copilot's success instills confidence that AI adoption will accelerate within enterprises.

High interest rates increase the interest burden on companies building computing power, and there are also risks of local opposition to data center construction and additional regulations, necessitating selective investment in AI stocks.

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