The trading week was marked by AI-driven momentum across multiple market sectors. Penny stocks like MicroAlgo Inc (MLGO) and CXApp Inc (CXAI) saw extreme volatility, with MLGO’s 393% year-to-date surge driven by low-float short squeezes and quantum computing developments. CXAI, despite a 47% YTD drop, remained in focus after announcing AI-powered workplace analytics tools. Analysts warned these moves reflect speculative trading rather than fundamentals, urging caution with risk management.

Semiconductor stocks rebounded after reports indicated the Trump administration might exclude chips from upcoming tariffs. AMD surged 7.5%, while Nvidia (NVDA) rose 3.5%, as investors bet on sustained AI infrastructure spending. Taiwan Semiconductor (TSMC) and Broadcom (AVGO) were highlighted as long-term buys due to their roles in AI chip production, with TSMC forecasting 45% annual AI revenue growth.

Jabil (JBL), a lesser-known AI hardware supplier, jumped 27% over nine months as demand for AI server racks and networking gear boosted margins. The company raised its 2025 revenue forecast to $27.9 billion, with AI accounting for 25% of sales.

GameStop (GME) broke out of a falling wedge pattern, sparking debate among technical traders. While its RSI momentum improved, a potential death cross (50-day MA crossing below 200-day MA) suggested lingering risks.

Globally, tariffs and AI race dynamics influenced strategies. U.S. investors focused on small-cap AI stocks and chipmakers, while firms like TSMC highlighted Asia’s growing AI infrastructure demand. Analysts repeatedly stressed that AI’s “long-term payoff” justifies buying dips in leaders like Nvidia and TSMC, despite short-term market jitters.