Technology Stocks Rally, Led by Autodesk and Semiconductor Companies

Stocks opened lower on Monday, but the market rebounded during the day, driven by a rally in technology stocks. Autodesk, a software maker, surged after news broke that activist investor Starboard Value had acquired a stake of approximately $500 million in the company. The move by Starboard Value is expected to lead to significant changes in Autodesk’s corporate governance.

By the end of the trading day, the Dow Jones Industrial Average was up 0.5% at 38,778, while the S&P 500 gained 0.8% to reach 5,473. The Nasdaq Composite outperformed, rising 1.0% to 17,857, with several large- and mega-cap stocks experiencing notable gains.

Autodesk’s stock jumped 6.5% following the news of Starboard Value’s investment. Meanwhile, semiconductor stocks also saw significant gains, with Micron Technology leading the charge. Susquehanna International Group analyst Mehdi Hosseini raised his price target on Micron to $185 from $143, citing increased confidence in pricing trends for DRAM and NAND chips. This positive outlook suggests a potential upside of over 25% for Micron’s stock.

The rally in Micron’s stock had a positive impact on other chip companies, including Super Micro Computer and Broadcom, which both experienced gains of 5.1% and 5.4%, respectively.

However, not all tech stocks saw gains on Monday. Adobe, which had a strong post-earnings rally on Friday, saw its shares decline by 1.3%. Analysts believe this dip is likely due to profit-taking, as Adobe’s longer-term prospects remain promising. The company has been focusing on artificial intelligence (AI) and is well-positioned to benefit from recent advancements in generative AI.

It is worth noting that the stock market will be closed on Wednesday in observance of Juneteenth, a holiday commemorating the emancipation of enslaved African Americans in the United States.