Nvidia has invested billions in constructing new factories for glassmaker Corning, significantly expanding its equity portfolio. This strategic move includes a multi-billion-dollar prepayment separate from an earlier announced equity investment of up to $3.2 billion. The initiative is expected to create thousands of jobs and increase U.S. production capacity tenfold.
Key Takeaways
Nvidia is investing billions to build new factories for glassmaker Corning, significantly boosting its equity portfolio and U.S. production capacity. Global tech stocks surged as demand for AI chips drove market gains, with Japan's Nikkei index jumping almost 6% and the S&P 500 rising another 1%. Arm Holdings forecasted first-quarter revenue slightly above estimates but saw shares slide due to supply concerns.
Meanwhile, global tech stocks experienced a surge as demand for AI chips continued to drive market gains. Japan's Nikkei index jumped almost 6% following the Golden Week holiday, led by an impressive near-20% leap in SoftBank’s shares. The S&P 500 also rose another 1%, partly due to hopes of a U.S.-Iran peace deal that resulted in a retreat in crude oil prices.
Arm Holdings forecasted first-quarter revenue of $1.26 billion, slightly above analysts' estimates. However, the company's shares slid as concerns over AI chip supply overshadowed its upbeat forecast. Arm CEO Rene Haas stated that while they had enough capacity to fulfill the first $1 billion of demand, securing supplies for the second billion dollars' worth of orders remained a challenge.
The broader tech sector saw significant gains, with Advanced Micro Devices (AMD) and Intel notching gains of about 25%, and memory maker Micron jumping more than 37%. AMD reported first-quarter revenue of $10.3 billion, with operating profit rising 83% from a year earlier. The company's market cap now exceeds $740 billion, while Micron's market cap stands above $84 billion.
SoftBank has injected more than $450 million into Graphcore, a British AI chip company acquired by the Japanese investment giant in 2024. According to a Companies House filing, Graphcore issued a single share valued at $457 million on April 10, with funding confirmed by SoftBank. This investment is part of SoftBank's broader strategy to play a major role in AI infrastructure and hardware.
Graphcore, which develops AI chips and systems, will use the funds for its operations and collaborations with SoftBank on developing artificial general intelligence (AGI). The company plans to invest up to £1 billion in opening a new AI campus in Bengaluru, India, hiring hundreds of roles across various engineering disciplines.
Despite these gains, concerns are growing about an overheated market. The Philadelphia SE Semiconductor index has soared 64% since the end of March, outpacing the S&P 500's nearly 17% gain. Some investors are bracing for a pullback, drawing comparisons to the 1999-2000 Internet bubble. High-profile investor Michael Burry said he was still holding puts in the iShares Semiconductor ETF.
The semis' outperformance means the broader market is increasingly reliant on this high-flying group. The AI buildout has also propelled tech companies specializing in memory and storage, such as Sandisk and Western Digital. Gains in semis and memory stocks accounted for 70% of the $5.1 trillion in market capitalization added by the S&P 500 in 2026 as of Monday.
Worldwide semiconductor revenue is expected to rise 64% to $1.3 trillion this year, according to research firm Gartner. Semiconductors and semi equipment companies in the S&P 500 are expected to increase earnings by about 95% this year, compared to an expected 62% increase as of January 1.
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