Chip stocks rallied on Wednesday following comments made by Nvidia (NVDA) CEO Jensen Huang at the World Economic Forum (WEF) in Davos.
Huang said that the AI explosion has jump-started the “largest infrastructure buildout in history”.
“There are trillions of dollars of infrastructure that needs to be built out,” Huang told BlackRock (BLK) CEO Larry Fink in a mainstage conversation on Wednesday.
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This propelled chip stocks higher, including AMD (AMD), with shares in the semiconductor company jumping 7.7% on Wednesday and rising by a further 2% in pre-market trading on Thursday.
US president Donald Trump’s pivot on Greenland also fuelled a broader market rally. Trump said in his speech at WEF on Wednesday that he wouldn’t use force to acquire Greenland and in a social media post later on, dropped his threat of more tariffs on European countries over opposition to his proposed takeover.
Another chip stock that surged on Wednesday was Intel (INTC), with shares closing the session 11.7% higher.
The stock is up a further 1.7% in pre-market trading on Thursday, as attention now turns to Intel’s (INTC) fourth-quarter results due out later in the day.
Intel (INTC) has guided to revenue of $12.8bn (£9.52bn) to $13.8bn for the fourth-quarter and adjusted EPS of $0.08.
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Shares have been rising since the start of the year, buoyed partly by the launch of its AI PC chips, signalling further progress in the company’s turnaround efforts.
Intel unveiled its core ultra series 3 chips, dubbed “panther lake”, at the consumer electronics show (CES) in Las Vegas in the first week of January. This is Intel’s (INTC) first chip to be built using its latest 18A manufacturing process.
Shares in US pharmaceutical and biotechnology firm Moderna (MRNA) jumped 15.8% in Wednesday’s session and were up another 4.6% in pre-market trading on Thursday.
The rise in shares came after Moderna (MRNA) and fellow pharma company Merck (MRK) announced positive results from its skin cancer treatment study. Merck shares rose 1.5% on Wednesday following the released of the findings.
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The companies said on Wednesday that five-year data showed that a combination of Moderna’s (MRNA) intismeran autogene vaccine and Merck’s (MRK) Keytruda drug, used on patients with high-risk melanoma, reduced the risk of recurrence or death by 49%.
“For many patients with stage III/IV melanoma, there is a significant risk of recurrence following surgery,” said Dr. Marjorie Green, senior vice president and head of oncology, global clinical development at Merck Research Laboratories.
“As such, demonstrating the longer-term potential of intismeran autogene and KEYTRUDA to reduce the risk of recurrence for certain patients with melanoma is a meaningful milestone.”
In the UK, Primark-owner Associated British Foods (ABF.L) is in focus on Thursday morning, after the company released its latest trading update.
ABF reported group revenue of £6.76bn ($9.08bn) for the 16 weeks to 3 January, down 1% on constant currency basis. The company posted a 2.7% fall in like-for-like sales for Primark.
Adam Vettese, market analyst at eToro, said that the update “confirms the weakness indicated in the profit warning earlier this month”.
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“Guidance remains cautious, with full year adjusted operating profit and earnings per share lagging last year due to US consumer weakness and Primark pressures,” he said.
“Overall, ABFs (ABF.L) diversified model can help the company navigate difficult periods through resilient store expansion and balance sheet strength, but earnings reset tempers enthusiasm,” Vettese added.
“At current levels, patient investors will hold tight, betting on Primark’s long-term rollout and consumer recovery, further upside will also be macro dependent.”
Shares in British pub chain Young & Co (YNGA.L) advanced 1.3% on Thursday, after the company reported strong trading over the festive season.
Young & Co (YNGA.L) said that like-for-like sales increased by 11.2% in the three weeks to 5 January, in a trading update on Thursday.
The company said that total managed revenue for the third quarter was up 5.6% and grew by 5.7% on a like-for-like basis.
Young & Co (YNGA.L) also announced plans to move from the UK’s alternative investment market (AIM) to the main market of the London Stock Exchange (LSE).
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The company said that it had grown “considerably” in size and performance in recent years and that its board believed moving onto the main market would enhance its profile.
Simon Dodd, CEO of Young’s, said: “Over the last two decades, AIM has provided a highly supportive environment for Young’s, helping us to realise our growth ambitions and secure vital funding, especially during the difficult period of the pandemic.”
He added that the company believed a move to the main market is a “natural and exciting next step for Young’s, and one that will open the door to a wider group of investors”.
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