Investors who bought into tech stocks during the recent market pullback are reaping the rewards. Shares of artificial intelligence giants like NVIDIA and Microsoft have been the biggest winners as stocks rebounded over the weekend and are back near all-time highs. Shares of the semiconductor maker rose 19% over the five-day period, while Microsoft rose 3%. Shares of iPhone maker Apple rose 4% each. Looking at the bigger picture, the Technology Select Sector SPDR Fund (XLK) rose more than 7%, posting its best week since November 2022. The exchange-traded fund is now just 7% away from its all-time high. XLK 5D Mountain The Technology Select Sector SPDR Fund (XLK) posted its best week in two years. This week has been a favorable one for investors who want confidence that the economy is stabilizing, with stocks largely erasing gains from the selloff in early August. The S&P 500 has risen about 4%. The S&P 500 is less than 2% away from its July high. But the revival of tech stocks isn’t surprising, since the fundamental tailwinds for AI haven’t changed much in recent months, even as some companies have drawn investor ire for ramping up capital spending on AI projects, according to Gene Munster, managing director at Deepwater Asset Management. “The fundamentals of the AI trade haven’t changed, [but] “I’m surprised people have come back so quickly,” Munster told CNBC on Friday. “Investors needed this mental reset.” The next test for the market to gauge how long the tech recovery will last will be Nvidia’s second-quarter results, which are due to be released on Aug. 28, Munster explained. “What we’ve seen in the market over the past week is [with] “This recovery is, at the most basic level, optimism over what Nvidia is saying. Of course, that’s the bellwether and all eyes will be on that,” he added. And even if Nvidia executives expect the launch of the Blackwell AI chip to be protracted, that in itself will actually be a tailwind, Munster argued. “Even if they say the launch is delayed, if they’re expecting a big upside, investors will probably be patient,” he said.
Tech stocks hit highest price in nearly two years
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