Source: Fortune
Summary
US stocks rose on Tuesday, recovering from a sharp drop the day before, as investors were reminded of the potential benefits of the artificial-intelligence boom. Advanced Micro Devices led the market with an 8.8% gain after announcing a deal to supply chips to Meta Platforms for its AI ambitions. The S&P 500 climbed 0.8%, while the Dow Jones Industrial Average added 370 points. Other companies that had been hit hard by AI worries, such as Salesforce and AppLovin, also trimmed their losses.
Our Reading
The numbers tell one story.
AMD’s deal with Meta sends a reminder that AI can bring benefits, not just disruption. IBM, which had dropped 13.1% on Monday, recovered some of its losses with a 2.7% gain. Meanwhile, Anthropic unveiled new tools for businesses to use with its Claude AI assistant, suggesting that AI might not replace existing software, but make it easier to use. As Dan Ives, an analyst at Wedbush, noted, “these new AI tools will not rip and replace existing software ecosystems and data environments.”
Author: Evan Null
