US stocks tick higher as Broadcom and other AI companies lift market

U.S. stock markets saw a modest gain on Tuesday, buoyed by positive performances of artificial intelligence (AI) companies, according to wire service reports. The S&P 500 experienced a 0.5 percent increase, bringing it within 1.3 percent of its all-time high achieved earlier this month. Similarly, the Dow Jones Industrial Average rose by 27 points, or 0.1 percent, while the Nasdaq composite index climbed 0.9 percent.

Despite the overall market uptick, the majority of stocks within the S&P 500 were experiencing declines. However, several key AI companies managed to offset these losses, contributing significantly to the market's positive movement. Among these influential AI stocks, Broadcom and Advanced Micro Devices (AMD) stood out, with Broadcom's share price surging 3.3 percent following the announcement of a $63 billion financing deal.

This deal, involving multiple Wall Street firms, aims to assist Anthropic in accessing Broadcom's XPU AI accelerators and networking solutions.

Advanced Micro Devices also saw a notable rise of 4 percent, playing a crucial role in pushing the S&P 500 higher. Meanwhile, CoreWeave, a company that has taken on debt to purchase AI-related assets, also contributed to the market's upward trajectory. The recent rally in AI stocks can be attributed, in part, to concerns about the high cost of borrowing money to establish data centers and acquire additional AI chips.