Today’s Top Stories: AMD Partners With Microsoft as Nvidia Bounces Back and Earnings Season Begins

TLDR

• AI stocks recovered after last week’s selloff, with Nvidia, AMD, and Broadcom all trading higher
• AMD announced an expanded AI partnership with Microsoft, boosting its standing in the sector
• Crude oil briefly crossed $90 per barrel before pulling back on diplomatic hopes
• Market breadth stayed weak despite gains in major indexes, with more stocks falling than rising
• Earnings season heats up with Alphabet, Tesla, Intel, and IBM all set to report this week

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AI stocks bounced back on Monday after a sharp pullback last week. Nvidia, AMD, Broadcom, and other semiconductor companies all traded higher as investors returned to the sector.

Many traders viewed last week’s decline as a buying opportunity rather than the start of a longer downturn. Confidence in long-term AI infrastructure demand appears to remain strong.

Analysts warn, though, that AI stocks will stay sensitive to earnings reports and management guidance in the weeks ahead.

AMD and Microsoft Expand AI Partnership

AMD was one of the day’s top performers after announcing a deeper AI collaboration with Microsoft. The deal focuses on AI hardware and cloud infrastructure, giving AMD a stronger foothold in one of tech’s fastest-growing areas.

The partnership reinforces a wider trend. Major technology companies are still pouring billions into data centers, processors, and cloud computing, showing no signs of pulling back on AI spending.

For investors, the deal is a reminder that AMD is positioning itself as a serious competitor to Nvidia in the race to supply enterprise AI computing power.

Oil Prices Add to Market Uncertainty

Crude oil briefly climbed above $90 per barrel before retreating after diplomatic progress eased fears over Middle East supply disruptions. Energy markets remain unsettled, with investors watching developments closely.

Higher oil prices raise costs across transportation and manufacturing. They can also squeeze consumer spending and make it harder for central banks to cut interest rates.

Recent US inflation data has been encouraging, but a sustained rise in energy costs could complicate the outlook for rate cuts later this year.

Weak Market Breadth Raises a Flag

Despite gains in the S&P 500 and Nasdaq, more individual stocks fell than rose during the session. That kind of weak market breadth suggests the rally was driven by a small group of large-cap tech companies rather than the broader market.

Analysts watch breadth closely because strong, healthy rallies usually involve wider participation across sectors. The current pattern highlights how much mega-cap tech stocks are carrying overall index performance.

Eyes Turn to Earnings

Corporate earnings are now the main focus for Wall Street. Alphabet, Tesla, Intel, and IBM are among the companies reporting results this week.

Investors will look beyond headline numbers to listen for management commentary on AI spending, consumer demand, and future growth. Given high valuations across many tech stocks, forward guidance could matter more than the earnings figures themselves.

The results this week may set the tone for markets well into the rest of the summer.