Nvidia's N1X PC Chip Debut Sparks Tech Rally as SoftBank and Wells Fargo Add to AI Momentum

A wave of AI-driven optimism swept through global technology markets on Monday after Nvidia CEO Jensen Huang unveiled a new personal computer processor at Taiwan's Computex conference, while SoftBank's Masayoshi Son declared the AI revolution dwarfs the dotcom era and Wells Fargo raised its price target on Microsoft.

Huang introduced the N1X processor, developed alongside Microsoft, describing it as capable of sparking a "reinvention of the computer….as big of a deal as the reinvention of the phone into what we now know as the smartphone." The announcement sent a broad range of computer-related stocks sharply higher in premarket trading.

ServiceNow led the premarket advance, climbing 14.4% ahead of Monday's opening bell. IBM surged 12.7%, Hewlett Packard rose 12.6%, and Arm climbed 12.2%. Nebius added more than 2%.

Not all chipmakers benefited equally. Shares in Intel fell nearly 6% in premarket trading — a retreat that signals investor concern about the competitive threat posed by Nvidia's entry into a segment Intel has long dominated. The U.S. government holds a near-10% stake in Intel.

The rally extended beyond American markets. South Korea's Kospi gained 3.7%, driven partly by surging domestic tech stocks. LG Electronics ended Monday's Seoul session up 29.9%, while Samsung Electronics rose approximately 10.1%. Samsung and LG executives are expected to meet with Huang later this week, raising the possibility of collaboration on AI and robotics.

Speaking in Paris a day after SoftBank announced a 75 billion-euro investment to build AI infrastructure in France, Son told CNBC that the scale of the current moment far exceeds what investors witnessed during the late-1990s internet boom.

"I think this is like more than 10x, probably 50x bigger than dotcom," Son told CNBC's Arjun Kharpal.

The 75 billion-euro commitment — equivalent to roughly $87 billion — includes building 3.1 GW of AI data centers in France's northern Hauts-de-France region by 2031, with sites in Dunkirk, Bosquel, and Bouchain. Total planned capacity for the French buildout reaches 5 GW. SoftBank is partnering with French engineering firm Schneider Electric to establish a large-scale industrial production hub in Dunkirk as part of the broader effort.

"We are doing that in the U.S. already, we are expanding a lot in the U.S., so we have the momentum, which we can make France the center of Europe, and Europe needs this kind of AI technology," Son said during a press briefing alongside French President Emmanuel Macron.

On the question of a market correction, Son drew a historical parallel to the 1929 crash in electronics and motorization, noting that the downturn preceded roughly a century of growth. "There may be some correction, but that will be the best investment opportunity to me," he said.

Wells Fargo added to the day's bullish tone by raising its price target on Microsoft to $650 from $625 — implying 44% upside from Friday's closing price. Analyst Michael Turrin, who carries an overweight rating on the stock, cited the company's expanding in-house AI model development as the key driver.

"The [company is] better positioned at software layer than [it's] getting credit for & making right moves to catch up on capacity, models & Copilot," Turrin wrote in a note to clients.

Wells Fargo estimates that two-thirds of Microsoft's $37 billion AI business derives from OpenAI and Anthropic's Azure consumption, along with a revenue-sharing arrangement with OpenAI, while the remainder comes from Microsoft 365, GitHub Copilot, and other AI services. Of 60 analysts covering Microsoft tracked by LSEG, 56 hold a buy or strong buy rating on the stock — even as shares have declined nearly 7% since the start of the year.

Microsoft is expected to reveal a suite of AI tools at its "Build" conference in California this week, including a coding model designed to complement GitHub Copilot, along with reasoning, transcription, and image models, according to reports. Further details on partnerships with major AI startups are also anticipated, which Wells Fargo flagged as a potential near-term catalyst for the stock.

Taken together, Monday's activity reflects a broader recalibration around which companies stand to capture the most value as AI infrastructure spending accelerates — and which face displacement as the competitive lines shift.

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