Chip stocks collectively soared, NVIDIA Corporation (NVDA.US) closing market value exceeded $5 trillion for the first time, Intel Corporation (INTC.US) surged more than 23%, achieving its best single-day performance since 1987.

On Friday, NVIDIA Corporation (NVDA.US) rose 4.32% to $208.27, reaching a new high since October last year, with a market capitalization exceeding $500 billion for the first time at closing. Since the end of 2022, the stock has risen more than 14 times, becoming one of the biggest beneficiaries of the AI wave. As a core supplier of artificial intelligence infrastructure, NVIDIA Corporation's graphics processing units (GPUs) are widely used by cloud computing giants such as Alphabet (GOOG.US, GOOGL.US), Microsoft Corporation (MSFT.US), Meta Platforms (META.US), and Amazon.com, Inc. (AMZN.US), as well as important chip suppliers for big model developers like OpenAI and Anthropic. The continuously rising demand for AI services and models is seen as the core driving force behind the continuous expansion of NVIDIA Corporation's valuation. Chip stocks rose collectively on Friday due to Intel Corporation's (INTC.US) earnings report exceeding expectations. Intel Corporation's stock price surged more than 23%, marking its best single-day performance since 1987. At the same time, AMD (AMD.US) rose nearly 14%, while Qualcomm (QCOM.US) rose over 11%, showing a renewed flow of funds back into the AI and semiconductor sectors. Previously, investors had reduced holdings in large tech stocks due to the spike in oil prices and supply chain disruptions caused by the US-Iran war tensions. However, as the market confirmed that the demand for AI infrastructure shows no signs of slowing down, the tech sector has recently regained favor. Driven by this, the tech-heavy Nasdaq Composite Index has risen by 15% so far this month, on track to achieve its best monthly performance since April 2020. Analysts point out that the market's focus is now shifting to next week's earnings reports from tech giants. Investors are generally expecting major cloud service providers to maintain high levels of capital expenditure, further strengthening the belief in the continuous expansion of AI computing needs, which will directly support NVIDIA Corporation's growth prospects. However, competition risks are also increasing. Alphabet, an important customer of NVIDIA Corporation, recently announced the launch of a new self-developed chip, planning to open it to cloud customers later this year to challenge NVIDIA Corporation's products. The market believes that as large tech companies accelerate their self-developed chip layout, NVIDIA Corporation's long-term monopoly advantage may face challenges.