Why BigBear.ai, Super Micro Computer, Arm Holdings, and Other Artificial Intelligence (AI) Stocks Surged on Tuesday

Investing in the latest developments in artificial intelligence (AI) has been a wild ride over the past year or so. However, over the past few weeks, investors have had that sinking feeling as many of the stocks in the space lost altitude. The combination of a rapid rise in stock prices and uncertainty heading into earnings season led to the downfall, though many believe the decline to be temporary. Market watchers have been looking for any sign that the downward pressure could be easing and may have found a reason to be optimistic today.

With that as a backdrop, data mining and analytics provider BigBear.ai (NYSE: BBAI) soared 9.3%, AI server specialist Super Micro Computer (NASDAQ: SMCI) surged 6.3%, chipmaker Arm Holdings (NASDAQ: ARM) jumped 3%, AI solutions provider C3.ai (NYSE: AI) climbed 3.3%, and Micron Technology (NASDAQ: MU) gained 2.9%, as of 12:56 p.m. ET on Tuesday.

A check of all the usual suspects -- regulatory filings, financial reports, and changes to analysts' price targets -- turned up nothing in the way of company-specific news driving any of these AI stocks higher. This suggests that many investors focused on developments for one of the biggest names in AI, chipmaker Nvidia (NASDAQ: NVDA).

Continue reading

Source Fool.com