TLDR
- AI stocks are rebounding Monday after last week’s selloff triggered by cheaper Chinese AI model concerns
- Alibaba shares rose up to 5% after previewing its Qwen 3.8 Max AI model, calling it second only to Anthropic’s Fable 5
- Chip stocks including Nvidia, AMD, Intel, and Micron all rose in premarket trading
- AMC Entertainment surged 12% after second-quarter earnings and revenue beat expectations
- Domino’s Pizza jumped 7.3% after second-quarter revenue beat Wall Street’s target
AI stocks are bouncing back Monday after a rough week. Investors sold off the sector last week over worries about cheaper Chinese large-language models cutting into demand.
Chip and AI-related names are all moving higher in premarket trading. Sandisk jumped 4.2%, Marvell climbed 2%, and Lumentum advanced 3.3%.
Nvidia, AMD, Intel, and Micron were also rising before the opening bell. Investors appeared to be buying the dip after last week’s declines.
Alibaba Launches Qwen 3.8 Max
Alibaba shares rose between 3.6% and 5% Monday after the company previewed its flagship Qwen 3.8 Max AI model. Alibaba described the model as second only to Anthropic’s Fable 5.
The launch came shortly after Moonshot released its Kimi K3 model, stepping up competition in the AI coding space. Alibaba said developers can access Qwen 3.8 Max right away through its Qoder platform.
Goldman Sachs weighed in on the release. The bank said it signals growing competition in high-end AI coding models, with more large language models expected to enter the market in the coming months.
AMC and Domino’s Beat Expectations
AMC Entertainment was one of the biggest movers of the day, surging 12%. The movie-theater chain reported second-quarter earnings and revenue that topped analyst expectations.
AMC also said 4.3 million moviegoers visited its U.S. cinemas from Thursday through Sunday to see The Odyssey. That attendance figure added to the positive sentiment around the stock.
Domino’s Pizza jumped 7.3% after its second-quarter revenue came in above Wall Street’s target. The fast-food chain gave investors another reason to feel good about consumer spending.
Other Movers
Fervo Energy gained around 5% after Jefferies upgraded the geothermal energy developer to Buy from Hold. The brokerage said a recent 40% drop from its IPO highs made the stock an attractive entry point, setting a revised price target of $34.
Yeti Holdings rose about 2% after Goldman Sachs upgraded it to Buy from Neutral. Goldman cited a more durable growth outlook and set a $63 price target, implying roughly 23% upside.
Stock futures were mixed overall as investors also weighed escalating Middle East tensions heading into a big week of earnings from major tech companies.
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