Technology Stocks Soar on Strong AI Earnings

Shares of technology companies experienced a significant surge following the impressive earnings reports of key players in the artificial intelligence (AI) industry.

Meta Platforms' Success Drives Shares Up

The stock of Meta Platforms skyrocketed by over 20% as the social media giant's early implementation of AI in its advertising sales proved successful. This not only led to a surge in revenue but also marked the establishment of a dividend. In a groundbreaking move, Meta Platforms added an astonishing $200 billion to its market value in a single session, setting a new record.

Intel Faces Challenges, Nvidia Flourishes

On the other hand, Intel faced setbacks as it encountered market challenges and delays in receiving U.S. government grant money to support its $20 billion chip-manufacturing project in Ohio. Consequently, Intel shares slipped. Meanwhile, its competitor Nvidia experienced a rally, with its stock experiencing a remarkable increase of about one third in the first five weeks of 2024.

Amazon's AI Ambitions Lead to Positive Growth

Amazon.com, a company with ambitious AI goals, saw its stock rise by over 7%. This growth was attributed to executives' announcement that demand for Amazon Web Services had accelerated in the fourth quarter. Additionally, they expressed optimism for continued positive trends throughout 2024. Analysts at brokerage MoffettNathanson referred to this announcement as the "magic words" that investors had eagerly awaited for months.