The stock market experienced a significant rally on February 6, with the Dow Jones Industrial Average closing above 50,000 for the first time. Nvidia played a crucial role, leading a powerful rebound in AI hardware stocks. Despite this positive trend, Amazon.com and Alphabet shares saw declines due to investor concerns about their substantial capital spending plans for 2026, following an earlier sell-off that wiped $1.5 trillion from tech names.
Artificial intelligence continues to reshape the tech industry, driving the emergence of new trillion-dollar companies. Nvidia briefly achieved a $5 trillion valuation in October, holding an impressive 81% market share for data center chips. The company plans to launch its new Rubin chips in the second half of 2026, with major cloud providers like Microsoft and Amazon Web Services expected to be among the first users. Other contenders for trillion-dollar valuations include Samsung, valued at $772.8 billion, benefiting from high demand for RAM and DRAM memory chips, and ASML, with a $542 billion market cap, which holds a monopoly on essential EUV lithography machines. ASML anticipates net sales between 34 billion and 39 billion euros for 2026.
The rise of agentic AI, exemplified by Anthropic's Claude Code, is changing how people write code and significantly increasing the demand for CPU computing power. This shift positions Arm Holdings for substantial growth, as its data center royalty revenue more than doubled in its third quarter, with data centers expected to become its largest business area. However, the rapid advancement of AI also presents challenges; software stocks, including Microsoft, Salesforce, and Adobe, saw a sharp decline of nearly 20% in one week. This drop stems from fears that new AI platforms, such as Anthropic's Claude Cowork and Google's Genie 3, will reduce demand for traditional software services. Furthermore, AI was linked to 7,624 job cuts in January.
In other AI-related developments, Datavault AI shares surged 32.9% despite missing quarterly earnings estimates. Micron Technology, a major producer of memory, faces a potential setback as industry sources suggest it may not supply Nvidia's next-generation HBM4 memory chips. This comes as Micron plans a significant $24 billion investment in a new wafer fabrication facility in Singapore to boost advanced NAND and HBM memory production. Wells Fargo also advises diversifying AI investments beyond top tech companies, suggesting hidden AI stocks like Himax Technologies Inc., which recently partnered with Vuzix Corp. for AR glasses components.
Key Takeaways
- Nvidia led a strong AI hardware stock rebound on February 6, contributing to the Dow Jones Industrial Average closing above 50,000.
- Nvidia briefly achieved a $5 trillion valuation and holds an 81% market share for data center chips.
- Nvidia plans to launch its new Rubin chips in the second half of 2026, with Microsoft and Amazon Web Services as initial users.
- Amazon.com and Alphabet shares fell due to concerns over large capital spending plans for 2026.
- AI is driving the growth of potential trillion-dollar companies like Samsung ($772.8 billion) and ASML ($542 billion), due to demand for memory chips and EUV lithography machines.
- Agentic AI, exemplified by Anthropic's Claude Code, increases demand for CPU computing power, benefiting Arm Holdings, whose data center royalty revenue more than doubled.
- Software stocks, including Microsoft and Salesforce, declined nearly 20% in one week due to fears that new AI platforms like Anthropic's Claude Cowork and Google's Genie 3 will reduce demand for traditional software services.
- Micron Technology faces a potential setback as it may not supply Nvidia's next-generation HBM4 memory chips, despite a $24 billion investment in a Singapore wafer fabrication facility.
- ASML expects net sales between 34 billion and 39 billion euros for 2026, with shares rebounding on hopes of increased AI spending from major tech companies.
- AI was linked to 7,624 job cuts in January, indicating a shift in the labor market.
Nvidia drives stock market rally as AI hardware rebounds
On February 6, the stock market saw a strong rally, with the Dow Jones Industrial Average closing above 50,000 for the first time. Nvidia led a powerful rebound in AI hardware stocks. MicroStrategy also surged as Bitcoin recovered to over $70,000 after a dip. However, Amazon.com and Alphabet shares fell due to concerns about their large capital spending plans for 2026.
Nvidia powers stock market gains on February 6
On February 6, the stock market experienced a broad rally, with the Dow Jones Industrial Average closing above 50,000 for the first time. Nvidia led a strong rebound in AI hardware stocks. MicroStrategy also saw a significant surge as Bitcoin recovered to more than $70,000. Despite the overall rally, Amazon.com and Alphabet shares dropped due to concerns over their large capital expenditure plans.
February 6 stock market sees Nvidia lead AI rebound
On February 6, the stock market rallied strongly, with the Dow Jones Industrial Average closing above 50,000 for the first time. Nvidia led a powerful rebound in AI hardware stocks, while MicroStrategy surged as Bitcoin recovered to over $70,000. However, Amazon.com and Alphabet shares fell significantly due to concerns about their large capital spending plans. An earlier sell-off that week had wiped $1.5 trillion from tech names.
AI fuels next trillion dollar stock contenders
Artificial intelligence is driving the growth of new trillion-dollar companies, following Nvidia's success. Samsung, currently valued at $772.8 billion, is a strong candidate due to high demand for RAM and DRAM memory chips needed for AI. Micron Technology is also capitalizing on memory shortages, valued at $469.5 billion. ASML, with a $542 billion market cap, holds a monopoly on EUV lithography machines, crucial for advanced semiconductors.
AI powers future trillion dollar companies
Artificial intelligence is creating the next wave of trillion-dollar companies, with Nvidia already leading the way. Samsung, with a market cap of $772.8 billion, is a top contender, seeing strong demand for its RAM and DRAM memory chips crucial for AI. Idaho-based Micron Technology also benefits from the memory shortage, reporting significant revenue and net income increases in its fiscal 2026 first quarter. ASML, valued at $542 billion, holds a unique position as the sole provider of EUV lithography machines, which are essential for making advanced semiconductors.
Datavault AI stock jumps 32.9 percent
Datavault AI shares surged 32.9% on Friday, despite the company missing its quarterly earnings estimates. The company reported a loss of $0.10 per share, which was $0.02 worse than expected. Zacks Investment Research recently upgraded Datavault AI stock from a sell to a hold rating. Datavault AI, headquartered in San Jose, California, provides a cloud-native data warehouse automation platform called Datavault Builder.
Arm Holdings poised for growth with agentic AI
Anthropic's Claude Code is changing how people write code, moving towards "vibecoding" with natural language prompts. This shift will speed up the use of agentic AI, which are independent AI tools. Agentic AI needs a lot more CPU computing power, making Arm Holdings a big winner. Arm's data center royalty revenue more than doubled in its third quarter, and the company expects data centers to become its largest business area soon.
Hidden AI stocks under $10 to consider
Wells Fargo's Paul Christopher advises investors to diversify their AI investments beyond the top tech companies. He suggests looking into sectors like industrials, utilities, and emerging markets such as South Korea and Taiwan. Himax Technologies Inc. is highlighted as a hidden AI stock under $10. Himax recently partnered with Vuzix Corp. to introduce a new optical component design for AR glasses at CES 2026. However, Morgan Stanley predicts future challenges for Himax due to weaker demand in key markets and increasing memory costs.
ASML stock rebounds on strong AI spending hopes
ASML Holding NV shares bounced back on Friday, February 7, in both Amsterdam and Nasdaq markets. This rebound came as investors grew hopeful about increased AI spending from major tech companies like Amazon.com and Alphabet. Nvidia also saw a significant jump of 7.8%. ASML expects net sales between 34 billion and 39 billion euros for 2026, with a gross margin of 51% to 53%. The company will pay an interim dividend of 1.60 euros per share on February 18.
Nvidia reaches 5 trillion dollar valuation with AI
Nvidia briefly became the first company in history to reach a $5 trillion valuation in October, driven by the booming AI industry. The company holds an impressive 81% market share for data center chips. Founded in 1993, Nvidia's GPUs, originally for video games, proved essential for AI training, especially after ChatGPT's release in late 2022. Nvidia is also developing "AI factories" for future data centers and plans to launch its new Rubin chips in the second half of 2026. Major cloud providers like Microsoft and Amazon Web Services will be among the first to use these chips.
AI fears hit software stocks hard
Software stocks, including major players like Microsoft, Salesforce, and Adobe, saw a sharp decline of nearly 20% in one week. This drop is due to growing fears that new AI platforms, such as Anthropic's Claude Cowork and Google's Genie 3, will reduce demand for traditional software services. Meanwhile, the Dow Jones Industrial Average, which has less tech exposure, reached new record highs. Despite strong earnings, Alphabet and Amazon shares fell as investors worried about the high costs of AI infrastructure spending. In January, AI was linked to 7,624 job cuts.
Micron faces Nvidia HBM4 setback invests 24 billion in Singapore
Micron Technology may not be a supplier for Nvidia's next generation of HBM4 memory chips, according to industry sources. This potential setback comes as Micron plans a significant $24 billion investment in a new wafer fabrication facility in Singapore. The new facility aims to increase the production of advanced NAND and HBM memory, which are crucial for AI-driven tasks. Micron is a major producer of DRAM, NAND, and HBM, supplying memory for various high-tech applications.
Sources
- Stock Market Today, Feb. 6: Nvidia Leads Rally After AI Hardware Rebounds
- Stock Market Today, Feb. 6: Nvidia Leads Rally After AI Hardware Rebounds
- Stock Market Today, Feb. 6: Nvidia Leads Rally After AI Hardware Rebounds
- Is Artificial Intelligence (AI) Creating the Next Generation of Trillion-Dollar Stocks?
- Is Artificial Intelligence (AI) Creating the Next Generation of Trillion-Dollar Stocks?
- Datavault AI (NASDAQ:DVLT) Trading Up 32.9%
- Anthropic's Claude Code Is Taking Over, And This AI Stock Could Be a Big Winner
- 7 Hidden AI Stocks Under $10 to Buy
- ASML stock price snaps back as AI spending bets return, with ex-dividend date next
- How Nvidia became the first $5 trillion company, in 4 charts
- Old favorite software stocks take beating as fear of AI's impact grows
- Micron’s Nvidia HBM4 Setback And US$24b Singapore Bet On AI Memory
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