Stocks closed higher Monday, building on their impressive November gains. There was little in the way of economic news to start the holiday-shortened week, but market participants had plenty of single-stock headlines to track – including a notable analyst note for Wall Street's newest semiconductor stock.
This morning, Wells Fargo analyst Gary Mobley initiated coverage on Arm Holdings (ARM) with an Overweight rating, which is the equivalent of a Buy. "We view ARM as one of the best positioned companies within the $550 billion global semiconductor industry," Mobley says. Among the things that Arm is "well-positioned to benefit" from are China's developing domestic chip industry and higher royalty rates the company can charge for newer-generation chips.
Mobley isn't alone in his bullish outlook for Arm stock, which held its highly anticipated initial public offering (IPO) back in September. According to S&P Global Market Intelligence, 19 analysts have a Buy or Strong Buy rating on the chipmaker, compared to eight holds, one Sell and one Strong Sell.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Arm shares surged 6.7% Monday, with fellow chipmakers Intel (INTC, +2.1%) and Broadcom (AVGO, +1.8%) also gaining ground. Nvidia (NVDA) was another industry winner, rising 2.3% ahead of its Tuesday night turn on the earnings calendar.
Microsoft pops after snagging ousted OpenAI CEO
In other equities news, mega-cap stock Microsoft (MSFT) jumped 2.1% after the company said it is bringing Sam Altman on board to head a new advanced artificial intelligence (AI) research team. In a startling move, Altman was fired as CEO of Microsoft-backed OpenAI on Friday and efforts over the weekend to reinstate him in the role failed. Altman, who is one of OpenAI's co-founders, chose instead to join the software giant.
"We remain committed to our partnership with OpenAI and have confidence in our product roadmap, our ability to continue to innovate," Microsoft CEO Satya Nadella said in a statement. The executive added that Microsoft looks forward "to moving quickly to provide" Altman and fellow OpenAI co-founder Greg Brockman "with the resources needed for their success."
Oppenheimer analyst Timothy Horan calls this a "win-win" for Microsoft, "as it still has full access to the best large language models (LLMs) and now the team to possibly make the next great LLM and the best AI minds in the world to help implement AI." Horan has an Outperform (Buy) rating on the Dow Jones stock.
As for the major indexes, the tech-heavy Nasdaq Composite rose 1.1% to 14,284, the broader S&P 500 gained 0.7% to 4,547, and the Dow Jones Industrial Average finished up 0.6% at 35,151.
As a reminder, the stock and bond markets will be closed Thursday for the Thanksgiving holiday and will close early on Black Friday.
Related content
-
House GOP Bill Aims to Abolish the IRS and Rewrite the Tax CodeTax Policy The stability of the IRS faces yet another challenge as the U.S. presidency changes hands.
-
More Taxes Could Slam New Yorkers Over MTA Budget ShortfallState Taxes Lawmakers warn that New Yorkers may need to brace for more taxes.
-
Stock Market Today: Dow Leads as UnitedHealth Stock PopsUnitedHealth was the best Dow Jones stock Monday on reports that Medicare Advantage payments could rise in 2026.
-
Stock Market Today: Dow Slides 697 Points on Super-Hot Jobs DataWhen the December nonfarm payrolls report hit the tape, there was no question which way stocks would go at Friday's opening bell.
-
Blowout December Jobs Report Puts Rate Cuts on Ice: What the Experts Are SayingJobs Report The strongest surge in hiring since March keeps the Fed on hold for now.
-
Stock Market Today: Stocks End Mixed After FOMC MinutesThe minutes from the December Fed meeting signaled central bankers' uncertainty over potential Trump administration policies.
-
Stock Market Today: Stocks Dragged Down by Strong DataInvestors weigh the prospect of no more rate cuts in the current cycle.
-
Nvidia CES 2025 Updates: What Investors Need to KnowNvidia stock is the worst Dow Jones stock Tuesday after the AI bellwether made several announcements at CES 2025. Here's what you need to know.
-
Stock Market Today: Tech Stocks Soar Ahead of CES 2025This week's annual technology event will give updates on AI, EVs and self-driving cars.
-
Stock Market Today: Dow Adds 340 Points to End SkidThe S&P 500 closed the official Santa Claus rally period down 0.5%.
