US Stocks Surge as Fed Rate Hike Materializes, AI-Related Gains Drive Tech Sector
The US stock market rallied after the Federal Reserve's interest rate hike, with major indices showing significant gains. The Dow Jones Industrial Average rose 0.61% to 51,778.04 points, while the Nasdaq Composite Index climbed 1.69% to 26,418.30 points.
Tech and memory stocks led the way in AI-related gains, with Intel (INTC) rising 7.67% to $108.8 and Micron (MU) gaining 5.5% to $977.5. Citi noted that as AI transitions from training and inference phases into continuous learning, demand for HBM, server DDR5, and enterprise solid-state drives will experience explosive growth starting in 2027.
Jensen Huang, CEO of Nvidia, predicted that chip sales would double by 2027, with cumulative revenue from AI chips reaching at least $1 trillion. The company's Blackwell and Blackwell Ultra platforms are already in full production, with the next-generation Vera Rubin entering production soon.