Arm, IBM, HPE surge as Nvidia chip shift lifts software stocks
▼ Summary
– Nvidia CEO Jensen Huang announced a new N1X processor for personal computers, developed with Microsoft, at Taiwan’s Computex conference.
– Software stocks surged on Monday, with Nebius rising 18%, ARM up 14.7%, and ServiceNow gaining 8.4%.
– IBM and Hewlett Packard Enterprise rose 8.1% and 5.8%, respectively, amid the broader tech rally.
– Intel shares fell over 3% as Nvidia’s push into PC chips posed a competitive threat.
– South Korean tech stocks boosted the Kospi by 3.7%, with LG Electronics up 29.9% and Samsung Electronics up 10.1%, ahead of expected meetings with Huang on AI and robotics.
A wave of enthusiasm swept through software stocks on Monday following Nvidia CEO Jensen Huang’s announcement of a new chip designed to power personal computers. The revelation, delivered at Taiwan’s Computex conference, triggered a sharp rally in computer-related names as the first trading day of June kicked off.
Leading the charge, Nebius surged an impressive 18%, while ARM climbed 14.7%. ServiceNow gained 8.4% after jumping 14.4% in premarket action, and IBM rallied 8.1%. Hewlett Packard Enterprise also joined the upward momentum with a 5.8% increase.
Huang’s keynote focused on the N1X processor, developed in collaboration with Microsoft. He described the chip as a catalyst for a “reinvention of the computer…as big of a deal as the reinvention of the phone into what we now know as the smartphone.” This bold comparison helped fuel investor optimism about a new era in PC architecture and software capabilities.
Yet Nvidia’s aggressive push into the PC chip market cast a shadow over Intel, whose shares fell more than 3% in morning trading. The U. S. government holds a near-10% stake in Intel, making the decline particularly notable as the chipmaker faces mounting competitive pressure.
Across the Pacific, South Korea’s tech sector also enjoyed a strong day. The Kospi index rose 3.7%, buoyed by a rally in major electronics firms. LG Electronics closed the session up 29.9%, while Samsung Electronics shares advanced roughly 10.1%.
Adding to the bullish sentiment, Samsung and LG executives are scheduled to meet with Jensen Huang later this week. These high-level discussions hint at potential collaboration in artificial intelligence and robotics, further fueling speculation about the next wave of technological innovation.
(Source: CNBC)
