AI is in vogue. When Anthropic offered positive comments on Thomson Reuters’ (TRI) legal AI product, TRI stock jumped by 11.4%. This is a rally not seen in over 20 years.
TRI’s CoCounsel platform is an AI assistant that should assist lawyers. In effect, the narrative that AI would destroy the business model of research and SaaS firms abruptly shifted.
Software stocks like Salesforce (CRM), Adobe (ADBE), ServiceNow (NOW), and Datadog (DDOG) bounced back. Intuit (INTU) initially rose on Tuesday but closed down by 23 bps.
Keysight (KEYS) gained nearly 25% yesterday to close at a 52-week high. The company posted strong Q1 revenue, helped by AI, aerospace and defense, and a general boost in activity.
AI-driven factors included optical and electrical equipment demand and rack emulation. Additionally, Keysight benefited from strong wireless and semiconductor test demand.
Advanced Micro Devices (AMD) added 8.77% on Tuesday. It announced a deal with Meta Platforms (META), which plans to spend double-digit billions per gigawatt of computing power. This is a multi-year deal. Unfortunately for AMD shareholders, the company granted Meta a performance-based warrant for up to 160 million shares. This is a 10% dilution if Meta meets its obligations. Before that deal, on October 6, 2025, AMD offered 10% of its shares to OpenAI in its deal to supply chips to the AI giant.
