AMD thrives on optimistic forecasts; Palantir stock tranches

The semiconductor stock rose after the company highlighted strong demand trends and provided an upbeat sales forecast in its first-ever analyst day. Meanwhile, shares of the artificial intelligence software company gave up some of their recent gains.

Major US stock indexes finished with mixed results on Wednesday, as the House of Representatives prepared for a vote that could put an end to the longest US government shutdown on record. The S&P 500 gained 0.1%, the Dow Jones advanced 0.7% for a record close for the second straight day, while the tech-heavy Nasdaq fell 0.3%. For more coverage from Investopedia About the most important daily events in the financial markets, see here.

Shares of Advanced Micro Devices (AMD) rose 9%, marking the strongest daily performance for the S&P 500, a day after the semiconductor manufacturer held its first-ever analysis day. CEO Lisa Su said the company has seen “insatiable” demand for AI and expects AMD’s revenue to grow to an annual rate of 35% over the next three to five years. The chipmaker also said the total addressable AI market could reach $1 trillion by 2030.

Shares of major airlines rose with the possibility of the government reopening soon. United Airlines (UAL) shares rose more than 5%, and Delta Air Lines (DAL) shares rose nearly 5%. Southwest Airlines (LUV) added about 4%.

Shares of entertainment giant Paramount Skydance (PSKY) fell 7%, the biggest loss of any S&P 500 component. With Wednesday’s decline, the stock gave up part of the strong gains it made in the previous session in the wake of the company’s first earnings report since its merger was finalized in August. Although the company has outlined ambitious investments in its studio and streaming businesses, its third-quarter revenue fell short of expectations, and some analysts have expressed concerns about the valuation following the stock’s post-merger surge.

Oracle (ORCL) stock continued its decline from record highs reached last month, falling nearly 4% on Wednesday. The enterprise software provider has garnered attention from major AI deals in recent months, including a $300 million cloud computing agreement with ChatGPT creator OpenAI. However, Oracle failed to meet sales and profit forecasts in its latest quarterly report released in September, and doubts remain about the sustainability of the ambitious growth targets.

Shares of Palantir Technologies (PLTR) also fell nearly 4%. The artificial intelligence software giant and defense contractor posted strong gains earlier this week amid hopes that the federal government may be close to returning to business as usual. However, the stock’s recent rise has also heightened concerns that it could be overvalued.