Shares of technology companies rose as the artificial-intelligence craze continued.

Nvidia shares rose after analysts at brokerage Morgan Stanley boosted their price target on the graphics-chip maker, which has become the primary source of AI-enabling semiconductors. "The catalyst path remains strong," said the Morgan Stanley analysts, predicting that the "frothiness" of Nvidia's stock is bound to return after a recent lull, given enthusiasm about new products and the continued growth in demand for existing AI offerings.

The mega-cap companies leading the way in AI technology "are performing incredibly well, and then you have everything else" on the charts for 2024 leadership, said J.D. Joyce, president of Houston financial advisory Joyce Wealth Management. The behavior of the stocks may be reminiscent of the Dotcom boom, but Joyce sees a distinction. "To me, the difference about AI is it really does have some fundamental basis," said Joyce.

Tesla shares rose after Chinese electric-vehicle makers logged surprisingly strong demand growth.

Byd Co. rose after the world's largest EV maker by volumes posted a 35% increase in June sales.

Shares of Chewy initially climbed after the influential retail trader -- known by his online moniker "Roaring Kitty" -- disclosed a 6.6% stake in the online pet-products retailer.

Meta Group shares slipped after the Facebook owner became the second major company, after Apple, to be charged under a new digital-competition law.


Write to Rob Curran at rob.curran@dowjones.com

(END) Dow Jones Newswires

07-01-24 1729ET