Dow Rises 370 Points, Software Stocks Recover After AI Disruption Fears Ease
US stocks closed higher on Tuesday (February 24th), led by a rally in Advanced Micro Devices (AMD) and a recovery in software stocks, as investor concerns about the potential disruption of AI in several industries began to ease. This strengthening helped the market recover some of the pressure experienced in the previous session, when AI sentiment triggered a sell-off in certain sectors.
The S&P 500 index rose 0.77% to close at 6,890.07, while the Nasdaq Composite gained 1.04% to 22,863.68. The Dow Jones Industrial Average added 370.44 points, or 0.76%, to end at 49,174.50.
The Dow's performance was also supported by a nearly 2% rise in Home Depot shares after the company posted earnings reports that beat expectations—for the first time in a year. Furthermore, IBM shares, which had been under pressure the day before due to concerns about AI disruption, rebounded, adding support to the index.
The main highlight came from AMD, which surged 8.8% after Meta Platforms announced a long-term collaboration agreement with the semiconductor manufacturer. Under this partnership, Meta plans to deploy up to 6 gigawatts of AMD GPU capacity for AI data centers. Meta is also said to be investing in AMD through a performance-based warrant scheme of up to 160 million shares.
This new agreement underscores the intensifying competition in the AI chip ecosystem and indicates continued spending on AI infrastructure by tech giants. Last week, Meta also announced it was using millions of Nvidia chips for its data center developments, and on Tuesday, Nvidia shares rose around 0.7% following improving sentiment in the AI sector.
Source: Newsmaker.id
