US technology stocks advanced on Wednesday as upbeat earnings from artificial intelligence-linked companies revived investor appetite for chipmakers, lifting the Nasdaq Composite even as concerns over the sustainability of AI spending lingered.
The Nasdaq Composite gained 1.05% to 26,701.12 at 11:36 a.m. ET, while the S&P 500 rose 0.46% to 7,748.13. The Dow Jones Industrial Average added 132.16 points, or 0.25%, to 52,628.04.
Chip stocks led the technology rally, with investors drawing encouragement from fresh signals of resilient demand for AI infrastructure. Advanced Micro Devices shares climbed 3.74% to $554.72, while Nvidia rose 2.40% to $221.66. Micron Technology advanced 2.58% to $919.22, according to the latest share-price data available for the session.
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The gains came as the Philadelphia Semiconductor Index rose 1.3%, recovering after a volatile stretch that included eight consecutive sessions of losses, its longest losing streak in 18 years.
Investor sentiment also improved after SpaceX shares surged nearly 10% following the company’s strong quarterly performance. Elon Musk’s rocket and space technology company reported a 161% year-on-year jump in third-quarter revenue and its first profit as a public company. Musk has also said that a potential merger between SpaceX and Tesla would be a good idea, with both companies forming special committees to discuss the proposal.
Tesla shares gained 3.5%, while Super Micro Computer jumped 10.3% after forecasting quarterly revenue and profit margins above Wall Street estimates, signalling continued demand for AI servers.
However, doubts over the scale and financing of AI investments remain. Nationwide chief market strategist Mark Hackett told Reuters that stress in credit markets was limiting technology stocks’ ability to sustain breakouts, with investors awaiting further earnings evidence to assess the durability of the AI spending cycle.
Meta Platforms was also in focus ahead of its quarterly earnings report, scheduled after the US market close, even as the company faced a significant legal setback.
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A New Mexico judge ordered Meta to pay $25 billion after a jury found that the company had misled consumers about data privacy. The case stemmed from allegations that users were not adequately informed about how their personal information could be accessed and used, including in connection with the Cambridge Analytica scandal.
Reuters reported that the judge initially found a substantially higher penalty warranted under state law but reduced the amount to $25 billion. Meta had argued that the penalties should be capped at $3.45 billion.
Despite the legal overhang, Meta remained on investors’ radar as markets looked for fresh clues about its AI investments, spending plans and revenue outlook.
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