Tesla, Nvidia, and Palantir Stocks Lead Nasdaq Rebound as Chip Stocks Surge

By: Sayan

Published on: Mar 13, 2025

The Nasdaq Composite index staged an impressive recovery on Wednesday, driven by strong performances from tech giants like Tesla (TSLA), Nvidia (NVDA), Palantir (PLTR), and a surge in semiconductor stocks. This rebound was fueled by a favorable Consumer Price Index (CPI) report, which indicated a greater-than-expected slowdown in inflation, boosting investor confidence in the technology sector.

Nasdaq’s Strong Comeback Amid Economic Optimism

The Nasdaq Composite index closed with a notable gain of 1.22%, reflecting renewed investor optimism in the tech-heavy market. In contrast, broader market indices showed mixed results, with the S&P 500 rising by only 0.5% and the Dow Jones Industrial Average slipping by 0.2%. This divergence highlights the technology sector’s resilience and its ability to recover from recent downturns.

Key drivers of this rebound included:

• Tesla’s impressive 7.6% jump, closing at just over $248 per share.


• Nvidia’s surge of 6.43%, ending the day at $115.74 per share.


• Palantir’s rally of 7.18%, closing at $83.65 per share.

Tesla Stock Rallies Amid Political and Market Challenges

• Tesla’s stock has been on a downward trajectory in recent months, driven by growing concerns over CEO Elon Musk’s political associations and his push for significant government spending cuts through the Trump administration’s Department of Government Efficiency. The electric vehicle (EV) giant has also faced mounting protests against its showrooms and manufacturing facilities, with some reports of vandalism targeting Tesla vehicles.


• In a strategic move to counter negative sentiment, President Trump showcased five Tesla vehicles on the White House’s southern lawn on Tuesday, including a striking cherry red Model S, which he ultimately purchased. Following this high-profile event, Musk took to X (formerly Twitter) to announce that Tesla is committed to doubling its U.S. vehicle production within the next two years, signaling a strong commitment to domestic manufacturing and job creation.


• This announcement not only boosted Tesla’s stock but also reinforced investor confidence in the company’s long-term growth prospects.

Nvidia and Chip Stocks Fuel Nasdaq’s Momentum

Nvidia, one of the market’s leading semiconductor companies, played a key role in the Nasdaq’s resurgence, climbing 6.43% by the end of the trading session. The company’s rally was driven by fresh optimism surrounding the artificial intelligence (AI) and semiconductor industries, which continue to see strong demand across multiple sectors.

Additionally, Taiwan Semiconductor Manufacturing Co. (TSMC), the world’s largest contract chipmaker, made headlines with its efforts to create a joint venture with industry giants Nvidia, AMD (AMD), and Broadcom (AVGO) to manage Intel’s (INTC) foundry division. According to Reuters, while TSMC would oversee operations, it would not own more than 50% of the joint assets, ensuring a balanced and collaborative effort among the participating companies.

This announcement, coupled with the White House’s earlier statement that TSMC plans to invest at least $100 billion in expanding chip manufacturing plants in the U.S. over the next four years, gave a significant boost to semiconductor stocks. As a result:

• TSMC’s stock rose by 3.63%.


• AMD gained 4.17%.


• Broadcom closed the day up 2.18%.

Palantir Soars on AI Innovation and Upcoming Event

Another standout performer was Palantir Technologies, a leading player in AI-driven data analytics. The company’s stock surged by 7.18%, closing at $83.65 per share. This rally was fueled by excitement surrounding Palantir’s upcoming sixth Artificial Intelligence Platform (AIP) event, scheduled for Thursday. Investors are anticipating groundbreaking announcements related to AI advancements, which could further solidify the company’s position in the industry.

Palantir’s focus on AI and data analytics has made it a key player in sectors like defense, healthcare, and finance, and its upcoming event is expected to showcase new innovations that could drive future growth.

Broader Market Impact and Investor Sentiment

• The stock market’s performance this week underscores a broader shift in investor sentiment. With inflation showing signs of easing and major tech stocks rebounding, analysts are optimistic about the market’s potential for continued growth in the coming months.


• The semiconductor industry, in particular, remains a focal point for investors, given its critical role in powering AI, autonomous vehicles, and high-performance computing. As companies like Nvidia and TSMC continue to innovate and expand their U.S. operations, they are well-positioned to capitalize on the growing demand for cutting-edge technology.


• Tesla’s commitment to ramping up domestic production also bodes well for the EV industry, especially as the company navigates regulatory challenges and geopolitical uncertainties. Musk’s proactive approach to reinforcing Tesla’s market position is expected to drive further stock momentum in the near future.

What’s Next for Investors?

• Federal Reserve Policy: Any indications of interest rate changes could impact market sentiment, particularly in the tech sector.


• Trade Relations and Tariffs: Trump’s evolving tariff policies may introduce volatility in the semiconductor and EV industries.


• Corporate Earnings: Quarterly earnings reports from major tech companies will provide insights into market trends and financial health.


• AI and Chip Innovation: Advancements in AI and semiconductor technology will continue to shape investment opportunities.

Conclusion

Wednesday’s Nasdaq rebound, led by Tesla, Nvidia, Palantir, and semiconductor stocks, highlights the resilience of the technology sector despite economic uncertainties. With inflation cooling, companies doubling down on U.S. manufacturing, and AI-driven innovation on the rise, the market outlook remains promising for tech investors.