Stocks are closing the week higher, recovering from losses incurred after the Federal Reserve meeting, with the S&P 500 up about 1% for the week. Crude oil prices have also decreased due to positive news regarding oil tankers in the Strait of Hormuz.
The AI chip sector is experiencing significant activity, particularly following comments from Apple CEO Tim Cook about raising prices for memory and storage chips, indicating that supply and demand imbalances will persist. This has led to gains for companies like Sandisk and Western Digital, as well as semiconductor equipment manufacturers such as Applied Materials and Lam Research.
Additionally, Amazon's shares rose after reports that the company is negotiating to sell its custom chips, including Graviton and Trainium, to third-party data centers. CEO Andy Jassy previously estimated that this chip business could generate an annual revenue run rate of $50 billion if it operated independently.
This move could potentially challenge Nvidia's market share, although Nvidia's stock remained stable with a slight increase. Upcoming earnings reports from FedEx and other companies, along with key economic data releases, will be closely watched by investors