Google Parent Alphabet and Tesla Lead Tech Rally

After worries about an AI bubble weighed on companies in the space last week, the AI trade came roaring back to start the new trading week. A search giant that drew strong reviews for its latest AI model added fuel to the rally, boosting shares of major semiconductor suppliers. Meanwhile, another member of the Magnificent 7 also soared as its CEO touted its AI chip plans.

Major U.S. equities indexes gained ground Monday amid growing expectations the Federal Reserve could be on track for another interest rate cut at its meeting in December. The Dow rose 0.4%, the S&P 500 added 1.6%, and the tech-heavy Nasdaq surged 2.7%. See here for more reporting from Investopedia on Monday’s market moves.

Shares of Google parent Alphabet (GOOG, GOOGL) jumped over 6% Monday to notch another all-time closing high. The tech giant’s stock has been pushing higher since last week’s launch of Gemini 3, its latest AI model. Salesforce (CRM) CEO Marc Benioff added to recent praise for Gemini 3 in a social media post on Sunday.

AI chipmaker Broadcom (AVGO), which counts Google as a major customer, saw its stock soar over 11% to log the best performance in the S&P 500 Monday. Shares of memory chip maker Micron Technology (MU), Advanced Micro Devices (AMD), and other semiconductor stocks also gained.  

Tesla (TSLA) shares rose nearly 7%. In a social media post over the weekend, CEO Elon Musk touted the electric vehicle maker’s AI chip capabilities and said Tesla plans to “build chips at higher volumes ultimately than all other AI chips combined.” As the company navigates competitive challenges in the EV market, Musk has been emphasizing Tesla’s advances in AI, self-driving technology, and robotics.

Shares of cruise operators sank Monday. Shares of Carnival Corp. (CCL), which is set to release its latest earnings results on Dec. 19, fell close to 7%, dropping the most of any S&P 500 stock. Shares of competitors Royal Caribbean (RCL) and Norwegian Cruise Line Holdings (NCLH), both of which missed revenue forecasts in their most recent quarterly reports, also moved lower. The industry has faced a number of headwinds, including high debt levels and macroeconomic uncertainty weighing on consumer spending.

Paramount Skydance (PSKY) shares slipped about 5%. Late last week, the company reportedly submitted its takeover bid for fellow entertainment giant Warner Bros. Discovery (WBD). While Paramount is said to be interested in acquiring the entirety of Warner Bros. Discovery, including its TV networks, competing suitors Netflix (NFLX) and Comcast (CMCSA) are reported to be interested primarily in the studio and streaming businesses.