AMD Surges on Upbeat Outlook; Palantir Stock Slides

A semiconductor stock powered higher after the company highlighted strong demand trends and provided an upbeat sales forecast at its first-ever analyst day. Meanwhile, shares of an artificial intelligence software firm gave back some of their recent gains.

Major U.S. equities indexes ended with mixed results Wednesday as the House of Representatives prepared for a vote that could bring an end to the longest-ever U.S. government shutdown. The S&P 500 eked out a 0.1% gain, and the Dow advanced 0.7% to notch a record close for the second straight day, while the tech-heavy Nasdaq slipped 0.3%. For more coverage from Investopedia on the day’s major stories in the financial markets, see here.

Advanced Micro Devices (AMD) shares surged 9%, notching the S&P 500’s strongest daily performance, a day after the semiconductor manufacturer held its first ever analyst day. CEO Lisa Su said the company has seen “insatiable” AI demand and projected that AMD’s revenue could grow to an annual rate of 35% over the coming three to five years. The chipmaker also said its total addressable AI market could reach $1 trillion by 2030.

Shares of major airlines surged with the prospect of the government reopening soon. United Airlines (UAL) climbed over 5%, and shares of Delta Air Lines (DAL) rose close to 5%. Southwest Airlines (LUV) added about 4%.

Shares of entertainment giant Paramount Skydance (PSKY) fell 7%, losing the most of any S&P 500 constituent. With Wednesday’s downturn, the stock gave back a portion of the strong gains posted in the prior session in the wake of the company’s first earnings report since the completion of its merger in August. Although the company outlined ambitious investments in its studio and streaming businesses, its third-quarter revenue fell short of forecasts, and some analysts have expressed valuation concerns following the stock’s major post-merger surge.

Oracle (ORCL) stock extended its decline from record-high levels reached last month, sinking nearly 4% on Wednesday. The enterprise software provider has garnered attention from major AI deals in recent months, including a $300 million cloud computing agreement with ChatGPT creator OpenAI. However, Oracle missed sales and profit forecasts in its latest quarterly report released in September, and uncertainties remain about the sustainability of its ambitious growth targets.

Palantir Technologies (PLTR) shares also declined close to 4%. The AI software giant and defense contractor had notched solid gains earlier this week amid hopes that the federal government could be nearing a return to business as usual. However, the stock’s recent runup also added fuel to worries it could be overvalued.