Chips stocks and troubled artificial-intelligence bellwether CoreWeave Inc. are rising, helping stocks rebound after the worst week for the tech-heavy Nasdaq 100 Index since the tariff turmoil of April 2025.
The Nasdaq 100 rose 1.2% as of 9:48 a.m. in New York, while the S&P 500 Index gained 0.6%. Semiconductor stocks rose, with the benchmark Philadelphia Semiconductor Index advancing 2.9%, on track to snap an eight-day losing streak, its longest in 18 years. Shares in data center, neocloud and optical firms also gained along with a broad-based rally in AI-adjacent firms.
“There will be a buying opportunity every time we see a day like Friday,” as big drawdowns in top tech stocks are unwarranted, Edison Byzyka, Chief Investment Officer at Credent Wealth Management, said.
Cloud-computing services provider CoreWeave added 3.0% after Goldman Sachs upgraded the stock to buy, highlighting the company’s revenue potential and tight supply. Shares had plunged last week as the company’s debt tumbled to levels that typically indicate distress, spurring anxiety about the sustainability of the AI rally.
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“We don’t believe that CoreWeave is circling the drain,” MoffettNathanson analyst Nick Del Deo wrote in a Monday note, as it has a “number of financing levers it can pull.” He noted that that the company is an “extremely important” customer of Nvidia Corp., which is “willing to use its heft to shape the end market for its products in a variety of ways,” he said. He added that CoreWeave is a “critical vendor to its customers, all facing compute shortages.”
