Nvidia's announcement of a new AI chip drove a broad rally in technology stocks Monday, with enterprise software and personal computer makers among the biggest beneficiaries. Shares of ServiceNow and Adobe jumped as the chip's focus on AI agents signaled growing demand for software platforms, not less. Microsoft, Dell, and HP also rose on expectations that the processor will power a new generation of AI-capable PCs.
The chip, unveiled by Nvidia, targets both data center and PC markets, positioning the company at the center of two parallel AI booms. For software firms, the chip's architecture is designed to accelerate AI agents—autonomous programs that perform tasks—which in turn requires more cloud infrastructure and enterprise applications. PC makers, meanwhile, see the chip as a catalyst for a replacement cycle driven by on-device AI capabilities.
All three major U.S. stock indexes advanced as June trading began, with the Dow rising amid separate hopes for a U.S.-Iran deal. Nvidia's stock itself rallied on the chip news, extending its gains from a strong May that saw the broader market post solid monthly returns. The S&P 500 and Nasdaq also closed higher, led by technology and semiconductor shares.
Analyst calls on Wall Street remain broadly bullish on Nvidia, with several firms reiterating buy ratings on the stock and raising price targets. However, some caution that the rally may be overdone given elevated valuations and potential supply constraints for the new chip. The broader market also faces headwinds from geopolitical uncertainty, including ongoing U.S.-Iran negotiations.