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Below are AI-generated insights on moves in the information technology sector, powered by MarketReader technology.

Wednesday, July 31

VGT [+3.1%]
The Vanguard Information Technology ETF (VGT) has increased by 3.1%, reflecting a broader market trend as the S&P 500 Index has risen by 2.01%. This upward movement in VGT is aligned with significant performance from key holdings. Notably, NVDA has surged, contributing substantially to the ETF's gains, while AVGO, AAPL, AMD, and QCOM also posted notable increases. Samsung Electronics has made strides in AI memory chips with NVIDIA's endorsement, enhancing its competitive edge. Microsoft is integrating OpenAI models and NVIDIA accelerators into its Azure platform, further solidifying NVIDIA's role in the AI landscape. Apple is benefiting from positive market sentiment, despite ongoing privacy debates surrounding its "Find My" feature. AMD reported strong quarterly results, exceeding expectations and boosting optimism for future revenue growth driven by AI-related demand.

NVDA | $114.76 | +10.7% | +300.8B

TSM | $163.02 | +5.4% | +228.5B

AAPL | $222.61 | +1.7% | +59.6B

NVDA | +10.8% | +303.8B
NVIDIA Corp is currently experiencing a notable price increase, aligning with a broader upward movement in the market and outperforming its sector peers. Additionally, Samsung Electronics has received approval from NVIDIA for a version of high bandwidth memory chips, marking significant progress in AI memory chip development. This advancement positions Samsung competitively against SK Hynix in the AI chip market. Furthermore, the integration of NVIDIA's hardware accelerators and advanced models from OpenAI into Microsoft's Azure cloud platform has strengthened NVIDIA's standing in the AI sector. Microsoft has reported substantial year-over-year revenue growth in Azure, primarily driven by AI services.

MSFT | -1.4% | -43.7B
Microsoft's stock is experiencing downward pressure, having dropped significantly following its recent earnings report. The company reported Q4 revenue of $64.7 billion, exceeding estimates, but cloud revenue fell short of forecasts. CEO Satya Nadella noted expectations for Azure revenue growth to accelerate in the latter half of the year, although concerns about capacity constraints remain. Additionally, Delta Airlines' CEO revealed a substantial cost of $500 million due to an IT outage linked to Microsoft systems, further compounding negative sentiment. In after-hours trading, shares declined by nearly 3%. Microsoft also provided guidance for Q1 FY2025 revenue between $63.8 billion and $64.8 billion.

AAPL | +1.7% | +59.6B
Apple Inc. has seen an increase in its stock price, aligning with a broader positive movement in the market, particularly in the tech sector, where the Nasdaq 100 Index has also risen significantly. The ProShares UltraPro QQQ has surged, reflecting strong sector performance. In company-specific news, Apple plans to utilize Google's TPU chips for its AI development, notably excluding Nvidia from its strategy. This choice comes amid Samsung's reported decline in smartphone demand, contrasting with Apple’s robust trading session. Additionally, Apple is set to announce its Q3 FY2024 earnings after market close on August 1, 2024, with an EPS estimate of $1.34 and a revenue estimate of $84.4 billion.

AMD | +5.6% | +13.3B
Advanced Micro Devices Inc (AMD) has seen its stock price rise significantly, moving in tandem with broader market trends, as reflected by an 8.04% increase in ProShares UltraPro QQQ and a 3.16% rise in the Nasdaq 100 Index. The company's recent earnings report showcased strong second-quarter results, with an adjusted EPS of $0.69 and revenues of $5.835 billion, both exceeding expectations. Notably, data center revenue surged by 115% to $2.83 billion, driven by demand for AI-related products. For the upcoming third quarter, AMD has set revenue guidance between $6.4 billion and $7 billion, surpassing analyst estimates. These robust financial results have coincided with the stock's upward movement during market hours.

UMC | +8.4% | +8.5B
United Microelectronics Corp reported second-quarter results with an EBIT margin of 24.5%, a gross margin of 35.2%, and a net income of TWD 13,790 million. The earnings per share (EPS) for Q2 was TWD 1.11, surpassing the estimate of 0.15, with a GAAP EPS of 0.171. While sales reached $1.750 billion, they fell short of the $1.762 billion estimate. Looking ahead, UMC expects mid-single-digit percentage growth in wafer shipments for Q3 and a stable average selling price quarter-over-quarter. Concurrently, the Nasdaq 100 Index has risen significantly, alongside a notable increase in Tokyo Electron Ltd, reflecting positive momentum within the semiconductor sector, which may be influencing UMC's performance.

MU | +7.5% | +9.2B
Micron Technology Inc has experienced a significant price increase of 7.5% during market hours on Wednesday. This movement occurs alongside a notable rise in the VanEck Semiconductor ETF, which has increased by nearly 6%, reflecting positive sentiment in the semiconductor sector. Additionally, the Nasdaq 100 Index has risen by approximately 3%, indicating broader market strength. Micron is outperforming its sector peers and is trading with an unusually high share of market volume today.

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