Source: Fortune
Summary
The Nasdaq had its worst session in a year on Friday, but by Monday, the chipmakers that were hit the hardest, such as Micron and Broadcom, were among the best performers, up 6.5% by midday. Nvidia’s CEO Jensen Huang called Friday’s selloff a buying opportunity, citing strong demand for AI chips. Morgan Stanley’s chief equity strategist Mike Wilson called Friday a “healthy reset” and reaffirmed an 8,000 target for the S&P 500. The market’s rebound was also driven by a stellar May jobs report, which pushed traders to fully price a quarter-point Fed rate hike this year.
Our Reading
The numbers tell one story. The chipmakers’ rebound on Monday was swift, with Micron and Broadcom leading the charge. Nvidia’s Jensen Huang was quick to call Friday’s selloff a buying opportunity, echoing his earlier projection of $1 trillion in combined sales for the company’s Blackwell and next-generation Vera Rubin chips through 2027. Morgan Stanley’s Mike Wilson saw Friday as a “healthy reset,” but the market’s sensitivity to negative surprises remains. The stellar May jobs report and the upcoming SpaceX IPO will test the demand story for AI.
Author: Evan Null
