NEW YORK, March 4, 2026, 12:55 ET — Regular session
- AI chip names found some footing by midday, shaking off early-week swings.
- Focus stayed on AI infrastructure spending, as Nvidia’s photonics investment plan was in play and Broadcom’s results were set to land after the close.
- Next up: Friday’s U.S. jobs report, another key hurdle for those betting on rate cuts.
Nvidia climbed 1.5% to $182.77 on Wednesday, after news earlier in the week about its $4 billion commitment to photonics suppliers. That gave a boost to some other AI-focused chip stocks: Advanced Micro Devices rallied 4.8%, closing at $200.14. Broadcom picked up 2.4% to finish at $321.25, with Super Micro Computer surging 5.9% to $32.48.
The bid is drawing attention—investors haven’t hesitated to hit stocks at the first sign that AI-related outlays aren’t paying off, particularly with valuations holding up and geopolitics already factored in. Goldman Sachs flagged “correction risks” for global equities on Wednesday, but stopped short of predicting a major bear market. Reuters
U.S. equities pushed higher earlier, lifted by cooling oil prices and a bounce in crypto that seemed to spark renewed risk appetite, according to traders. “You combine all of those and it equates to a market that’s feeling further emboldened,” said Michael James, equity sales trader at Rosenblatt Securities. Reuters
Nvidia on Monday announced plans to pour $2 billion apiece into Lumentum and Coherent, backing photonics tech to push its data-center chips further. The company’s betting on light-based data movement, not just traditional electrical signals, as AI workloads—like inference, the process of running trained models—accelerate thanks to a surge in chatbots and similar tools. Lumentum chief Michael Hurlston said investment will go toward ramping up capacity with a new fabrication plant.
Broadcom will post its results after the bell Wednesday, offering another snapshot of AI networking and custom chip demand at a time when the sector has lost some momentum following recent volatility in the “Magnificent Seven.” Wall Street is looking for another strong year-over-year jump in both revenue and profit, with major cloud players still writing big checks. Still, some investors want firmer proof that those heavy investments are delivering real returns. Barron’s
The macro calendar isn’t helping traders hanging onto chip stock gains. Eyes are now on the U.S. jobs data for February, set for release Friday, March 6, after recent swings fueled by anxious bets on AI winners and losers. “There is very little definitive right now about that, and so I think that will continue to be a concern,” said Kristina Hooper, chief market strategist at Man Group. Reuters
The risk is clear enough—a jobs report that comes in above forecasts could send yields up and put pressure back on high-multiple growth names. And if there’s even a hint of weakening AI infrastructure demand, chip stocks, now central to the story, could take a sharp hit.
Nvidia’s upcoming GTC conference, set for March 16-19, has traders watching for new information on the company’s forthcoming chips—especially those targeting inference. J.P. Morgan analysts flagged a pickup in options trading ahead of the event, with investors positioning themselves for what could be a market-moving announcement.
Broadcom’s quarterly results are coming after the bell on Wednesday. Friday brings fresh U.S. jobs numbers. Then, Nvidia steps up with its GTC event in mid-March. Three potential catalysts, all lined up, ready to shake up AI hardware demand forecasts.
