Nvidia and AMD Slide after Google AI chip deal report; Best buy stocks jumps

Several major AI chip makers have lost ground, as a potential deal between two major technology companies highlights competitive pressures in the market. Meanwhile, shares of one electronics retailer rose after a strong quarterly report.

Major US stock indexes rose for the third straight session as investors grew more optimistic that the Federal Reserve may cut interest rates at its December meeting. The Dow Jones rose 1.4%, the S&P 500 rose 0.9%, and the Nasdaq closed up 0.7%. See here for more Investopedia On Tuesday’s market movements.

Shares of Keysight Technologies (KEYS) jumped 10% to top Tuesday’s performance in the S&P 500, after the electronic test and measurement solutions provider beat quarterly earnings estimates. The company’s sales expectations exceeded expectations, supported by strong demand from artificial intelligence data centers. Keysight also announced a new $1.5 billion stock buyback program.

Shares of companies exposed to the housing market continued their recent rise amid growing optimism about lowering interest rates, which could lead to lower mortgage rates. Builders FirstSource (BLDR) stock rose nearly 9% on Tuesday, adding to the residential building materials supplier’s strong gains in the previous session.

Consumer electronics retailer Best Buy (BBY) reported better-than-expected adjusted same-store sales, revenue and earnings for the third quarter, and its shares rose more than 5%. The company also raised its full-year outlook, citing consumer resilience as well as gains in the computer, tablet and gaming categories as customers upgrade and replace older devices.

Shares of chip maker Advanced Micro Devices (AMD) fell nearly 4%, falling more than any S&P 500 stock on Tuesday, while Nvidia (NVDA) fell nearly 3% after a report that Meta Platforms (META) is evaluating the use of Google’s AI chips. Shares of Google parent Alphabet (GOOGL) rose nearly 2% to close at a new high.

JM Smucker (SJM) stock lost 3.7% after the parent company of Jif peanut butter and Folgers Coffee released its fiscal second-quarter earnings report. Although sales for the period exceeded expectations and adjusted earnings matched expectations, Smucker’s full-year earnings forecast was disappointing. The company raised coffee prices as it weathers tariff pressures, but said it would refrain from further price increases this winter after the United States excluded raw coffee from tariffs.