Ai demand remains strong despite tariff concerns
Megacap tech stocks are in rally mode today, including semiconductor concern Nvidia (NVDA). The shares of sector peers Lam Research Corp (NASDAQ:LRCX) and Texas Instruments Inc (NASDAQ:TXN) are also higher after the companies bested top- and bottom-line expectations for the fiscal third and first quarter, respectively.
LRCX is up 5.7% to trade at $70.50 at last glance, chipping away at its 20.1% year-to-date deficit. Looking to conquer overhead pressure from the 20-day moving average, the stock is headed for a third-straight daily gain. Lam Research issued an upbeat fourth-quarter forecast due to strong demand for artificial intelligence (AI) chips in addition to its results beat. In response, the equity saw a mix of price-target cuts and hikes.
Last seen up 7.2% at $163.04, TXN is also seeing both bull and bear notes today. The company issued a better-than-expected second-quarter outlook despite tariff uncertainty, which helped set shares on track for their fourth gain over the last sessions and best day in three weeks. The stock is also set to conquer its 20-day trendline as it bounces off its April 11, 52-week low of 139.95, but year-to-date, it still carries a 13.2% deficit.
LCRX and TXN are each seeing double the intraday average volume of puts and calls in the options pits today. For LCRX, the most activity is happening at the weekly 4/25 70-strike call, while for TXN, the 162.50-call in that weekly series is getting the most action, with new positions being opened at both.