Google Parent Alphabet and Tesla Lead the Tech Rally

After concerns about the AI ​​bubble weighed on companies in the space last week, AI trading is back in action to start the new trading week. The search giant that received strong reviews for its latest artificial intelligence model added fuel to the rally, boosting shares of major semiconductor suppliers. Meanwhile, another member of the Magnificent 7 company also rose as its CEO touted plans for its AI chips.

Major US stock indexes rose on Monday amid growing expectations that the Federal Reserve may be on track for another interest rate cut at its December meeting. The Dow Jones index rose by 0.4%, the Standard & Poor’s 500 index rose by 1.6%, and the Nasdaq index, which was dominated by technology companies, rose by 2.7%. See here for more reports from Investopedia On Monday’s market movements.

Shares of Alphabet, Google’s parent company (GOOG, GOOGL), jumped more than 6% on Monday to set another all-time closing high. The tech giant’s stock has soared since the launch last week of Gemini 3, its latest artificial intelligence model. Salesforce (CRM) CEO Marc Benioff added to the latest praise for Gemini 3 in a social media post on Sunday.

Artificial intelligence chip maker Broadcom (AVGO), which counts Google as a major customer, saw its shares rise more than 11% to top the S&P 500 on Monday. Memory chip maker Micron Technology (MU), Advanced Micro Devices (AMD), and other semiconductor stocks also rose.

Tesla (TSLA) shares are up nearly 7%. In a social media post over the weekend, CEO Elon Musk praised the electric car maker’s AI chip capabilities and said Tesla plans to “ultimately build chips in larger quantities than all other AI chips combined.” As the company overcomes competitive challenges in the electric vehicle market, Musk emphasized the progress Tesla has made in artificial intelligence, self-driving technology, and robotics.

Cruise operator shares sank on Monday. Carnival Corp. shares fell. (CCL), which is scheduled to report its latest earnings results on Dec. 19, fell nearly 7%, causing a bigger drop than any S&P 500 stock. Shares of rivals Royal Caribbean (RCL) and Norwegian Cruise Line Holdings (NCLH), both of which missed revenue expectations in their most recent quarterly reports, also fell. The industry has faced a number of headwinds, including rising debt levels and macroeconomic uncertainty affecting consumer spending.

Paramount Skydance ( PSKY ) shares fell about 5%. Late last week, the company reportedly made a takeover bid for entertainment giant Warner Bros. Discovery (WBD). While Paramount is said to be interested in acquiring Warner Bros. Discovery as a whole, including its TV networks, rivals Netflix (NFLX) and Comcast (CMCSA) are said to be primarily interested in the studio and streaming business.