Dow Rises Ahead of Nvidia Earnings Amid Semiconductor Optimism

The US stock market closed higher on Monday ahead of Nvidia's earnings release. The Dow Jones Industrial Average rose by 73.14 points, or 0.14%, to 53,490.30 as of 10:25 a.m. ET.

Semiconductor stocks rallied on earnings optimism, with AMD gaining between 3.4% and 4.25%, Micron Technology adding 2.48%, Intel rising 3.04%, Nvidia climbing 2.81%, and SK Hynix ADRs advancing 2.54%. The iShares Semiconductor ETF (SOXX) also rose 1.81%.

The rally in semiconductor stocks was largely driven by anticipation of Nvidia's fiscal quarter earnings, which is set to be released after the market close on August 26. With valuation concerns surrounding AI-related stocks persisting, Nvidia's results are widely seen as a critical barometer for the sustainability of the AI investment boom.