New York, USA – July 29, 2025 –
Mega-cap technology stocks were largely on the ascendant today, driving the Nasdaq Composite to another record close, as investors reacted positively to significant developments in the artificial intelligence sector and shifts in U.S. trade policy towards China.
Tesla (TSLA) was a standout performer, surging approximately 3% after confirming a landmark $16.5 billion deal with Samsung Electronics for its next-generation AI chips. This long-term agreement, reportedly extending through 2033, will see Samsung produce Tesla’s advanced “AI6” chips at its new state-of-the-art facility in Taylor, Texas. These custom-designed processors are crucial for the future of Tesla’s autonomous driving systems, robotics platforms, and its Dojo training clusters, solidifying Tesla’s commitment to in-house chip development and diversifying its supply chain. Elon Musk hinted the $16.5 billion figure is a “bare minimum,” suggesting actual output and value could be significantly higher.
Other major players in the chip sector also saw robust gains:
* Nvidia (NVDA), a dominant force in AI accelerators, climbed nearly 2%. The company continues to benefit from insatiable demand for its GPUs, which are foundational to the burgeoning AI industry. Nvidia recently reached a market capitalization of over $4 trillion, solidifying its position as the world’s most valuable company.
* Broadcom (AVGO) added 1.4%, extending its positive momentum. The company has been reporting strong revenue growth in its AI semiconductor solutions, driven by robust demand for AI networking.
A significant boost for several tech hardware companies came from reports that the Trump administration has reportedly loosened restrictions on technological exports to China as a means to bolster ongoing trade negotiations. This strategic shift is believed to have positively impacted sentiment towards companies with exposure to the Chinese market.
* Super Micro Computer (SMCI), a server manufacturer critical to AI infrastructure, was a prime beneficiary of this news, surging over 10% and leading the advancers on the S&P 500. The loosened restrictions signal a potentially more favourable environment for companies supplying computing hardware that could be impacted by trade tensions.
Meanwhile, Advanced Micro Devices (AMD) also saw a notable gain of over 4% today. This surge followed reports that AMD has raised the pricing on its Instinct MI350 AI chip from $15,000 to $25,000 per unit, a hefty 67% increase. Despite the significant price hike, the MI350 reportedly remains more competitively priced than Nvidia’s comparable Blackwell B200 chip. This aggressive pricing strategy suggests AMD’s confidence in the performance and market demand for its latest AI accelerator, as it continues to vie for market share in the lucrative AI hardware space. Analysts are closely watching how this price increase will translate into AMD’s upcoming quarterly earnings, which are slated for early August.
Overall, the strong performance of these mega-cap tech and semiconductor firms underscored investor enthusiasm for the AI revolution and reflected a positive reaction to strategic trade adjustments, even as broader market sentiment remained cautious ahead of a packed week of economic data and corporate earnings.
