Nvidia trails chip rally as Wall Street rebounds on lower oil

By Grace Kim

The Dow Jones Industrial Average rose 819 points, or 1.6%, at 10:06 a.m. ET Monday as Wall Street recovered from last week’s AI-driven sell-off. The S&P 500 gained 1.8%, and the Nasdaq Composite rose 2.1%. At the open, gains stood at 1.3%, 1.4% and 1.7%, respectively, Seeking Alpha reported at 9:43 a.m.

Why did Wall Street rebound?

WTI crude fell 3% to about $87 a barrel, and Brent dropped 4% to about $94 by 10:06 a.m., CNBC reported. TipRanks, writing at 9:54 a.m., put Brent down 4.7% at $93.67 and WTI down 4.1% at $87.10.

TipRanks tied the decline to President Trump telling CNN that further strikes on Iran were “highly unlikely.” MLQ also covered an attack on an Iraqi gas field earlier Monday.

How severe was the prior sell-off?

Last week, the Nasdaq fell 3.4%, the S&P 500 2.7% and the Dow 0.9%, according to TipRanks. The Nasdaq gained 1.1% on Friday but still ended a fourth consecutive weekly decline.

Investors had worried that the Democrats’ midterm win would slow the AI infrastructure build-out, a concern that dominated the previous week’s trading.

Why did Nvidia lag the chip rally?

Nvidia, the market’s largest AI stock, fell 6.5% minutes after the opening bell. CNBC put the loss at about 6% at 10:06 a.m. The Information recorded an early decline of as much as 6.6%. At 9:48 a.m., the shares stood at $173.05, down 7%, according to 24/7 Wall St.

The pressure followed the board’s investigation of Chief Executive Officer Jensen Huang, which MLQ reported in detail. Dan Ives of Yorkville Ives & Co. told CNBC the situation “will create an overhang on the stock.”

Which chip and equipment stocks gained?

Broadcom and AMD each gained 5% at 10:06 a.m. Broadcom traded 6.5% higher at $312.77 shortly before 10 a.m., a few days after reaching a 52-week low of $289.77, Investing.com reported.

Oppenheimer analyst Rick Schafer upgraded AMD to outperform from perform, with a $600 price target, 34% above Friday’s close. Google’s new TPU 8tx, announced Monday, runs Google training silicon alongside AMD processors for confidential AI work. Seeking Alpha linked AMD’s gain to that win.

Applied Materials gained about 8% to $359.42 around 9:50 a.m. The stock had fallen nearly 37% over the prior month, according to Investing.com. Applied Materials reports fiscal fourth-quarter results after Thursday’s close on Nov. 12.

Coherent gained 8.6% to $209.29 after reporting a 50% revenue jump last week. Western Digital rose 8.6% to $286.50 after a 17% fall on Nov. 5. Fuel-cell maker Bloom Energy, a data-center power supplier, rose 8.9% in morning trading after a roughly 16% drop on Nov. 6.

How did JPMorgan change its internet focus list?

JPMorgan analyst Doug Anmuth added Meta to the bank’s Analyst Focus List on Monday, replacing Alphabet, 24/7 Wall St. reported at 9:48 a.m. Amazon remained the other internet name. Meta rose 5% to $637.77, and Amazon gained 5% to $272.27.

Alphabet still rose 3% to $293.71. JPMorgan retained an overweight rating but flagged slower AI search monetization.

Elon Musk said Tesla would refund many Cybertruck deposits before the production line shuts. Tesla gained about 5% to $376.25 by 9:49 a.m. Microsoft rose 2% at 10:06 a.m., according to CNBC.

Will the rebound hold?

Citi cut tactical ratings on U.S., global and European technology to neutral from overweight in a Monday note. Strategist Beata Manthey said positioning could shift further into net short positions. Schwab’s Liz Ann Sonders told CNBC that retail investors had not served as dip buyers as they had in the past.

Consumer and producer price data arrive this week. CoreWeave, Nebius and Cisco also report earnings, and Applied Materials reports Thursday after the close.

The coming price data and corporate results will keep investors focused on AI infrastructure demand and the uneven recovery across chip suppliers.