Broadcom Boosts AI Euphoria Amid Mixed Market Movements

Wall Street saw choppy trading as government bond yields rose, but optimism around artificial intelligence remained strong thanks to a forecast from Broadcom. The company's shares soared nearly 19% after predicting strong demand for AI chips, pushing its market capitalization past $1 trillion for the first time.

In a day marked by volatility, Wall Street's main indexes were largely directionless as government bond yields experienced an uptick.

Broadcom helped sustain the enthusiasm surrounding artificial intelligence with a robust revenue forecast that sent its stock soaring nearly 19%, allowing the company to surpass a $1 trillion market capitalization for the first time. This propelled a mixed reaction in chip stocks, with Broadcom competitor Marvell Technology seeing an 8.4% rise, while AI leader Nvidia saw a downturn, closing down by 2.8%. A semiconductor stock gauge increased by 2.3%.

Yields on U.S. Treasuries climbed, with the 10-year bond yield reaching a three-week high of 4.3770%. As the year winds down, market attitudes suggest stability following a remarkable year for major equity markets, said Crewe Advisors' Chief Investment Officer Dustin Thackeray.

(With inputs from agencies.)