The S&P 500 (^GSPC +0.77%) rose 0.78% to 7,502.04, the Nasdaq Composite (^IXIC +0.88%) gained 0.88% to 26,635.22, and the Dow Jones Industrial Average (^DJI +0.75%) added 0.75% to 50,063.45, as the S&P 500 and Nasdaq notched record closes on AI-fueled strength.
Market movers
Cisco Systems jumped more than 10% after an earnings beat, powering gains across the networking industry and Dow components. Partially thanks to Cisco’s success today — and the fact that the company announced its AI infrastructure solutions order book grew from $5 billion to $9 billion — fellow networking juggernaut Broadcom climbed about 5% to a 52-week high.
Meanwhile, newly public Cerebras Systems nearly doubled from its IPO price, though software names such as Palantir saw profit-taking.
What this means for investors
While Cisco’s earnings reinforced that the AI revolution remains alive and well, it was newcomer Cerebras Systems’ market debut that stole the show today. Originally priced at $185, CBRS shares briefly doubled to start the day, before closing roughly 68% higher. The upstart AI chipmaker competes with behemoths like Nvidia and AMD, arguing that it uses less power to deliver much faster inference for its AI customers.
Despite this overwhelmingly positive debut for Cerebras, Nvidia stock also rose 4% today as CEO Jensen Huang joined other technology leaders on a trip to China for the Trump-Xi summit. Reports surfaced that Nvidia’s H200 chips may be allowed for sale to China, boosting the stock on further hopes of improving trade relations.
Josh Kohn-Lindquist has positions in Advanced Micro Devices, Nvidia, and Palantir Technologies. The Motley Fool has positions in and recommends Advanced Micro Devices, Broadcom, Cisco Systems, Nvidia, and Palantir Technologies. The Motley Fool has a disclosure policy.