Nasdaq 100: Chip Stocks Rally as Nvidia Earnings Loom—Can AI Drive Market Gains?

Nasdaq Rallies Ahead of Nvidia Results as Chip Stocks Rebound

The Nasdaq led Wall Street higher on Wednesday, boosted by a strong rebound in semiconductor stocks ahead of Nvidia’s highly anticipated quarterly results. Investors are eyeing Nvidia’s performance to gauge future demand in the artificial intelligence (AI) sector, which has driven much of the market’s momentum this year.

Eight of the S&P 500’s eleven sectors finished in positive territory, with technology stocks gaining 1.2%. The broader S&P 500 also climbed, recovering from recent losses driven by concerns over AI infrastructure overcapacity. The Dow Jones Industrial Average saw more modest gains as traders focused on tech-heavy growth stocks.

Will Nvidia’s Earnings Propel AI Stocks Higher?

Nvidia shares rose 3.3% ahead of its earnings report, with traders anticipating guidance that could set the tone for AI-related equities. Chipmakers Broadcom and Advanced Micro Devices also gained, pushing the Philadelphia Semiconductor Index 2% higher.

Market sentiment has been volatile since the January launch of low-cost AI models by China’s DeepSeek, which raised questions about Big Tech’s hefty investments in AI. According to CFRA Research’s Sam Stovall, while Nvidia’s chip demand remains robust, “investor expectations might be even higher,” suggesting potential for sharp moves post-earnings.

Which Sectors and Stocks Led the Market?

The technology sector led gains, with standout performances from Super Micro, which surged 14.7% after filing long-delayed reports, and Intuit, which jumped 12.3% on strong revenue forecasts.

General Motors rose 7% as it announced a 25% dividend hike and a $6 billion share buyback program. Phoenix-based copper miner Freeport-McMoRan added 3.6% as copper prices climbed on news of a potential U.S. tariff probe ordered by President Trump.

However, not all sectors saw gains. Consumer staples (-0.94%) and energy (-0.46%) were among the laggards, reflecting mixed investor sentiment on defensive plays.

How Did Market Breadth and Megacaps Perform?

Market breadth was solid, with advancing issues outnumbering decliners by a nearly 2-to-1 margin on the NYSE and over 2-to-1 on the Nasdaq. The S&P 500 registered six new 52-week highs against one new low, while the Nasdaq Composite logged 17 new highs and 85 new lows.

Among megacaps, Meta Platforms gained 2.2%, while Apple slid 1.5%. Tesla added 0.6% after its market capitalization fell below $1 trillion earlier this week.

What Should Traders Watch Next?

All eyes remain on Nvidia’s post-market earnings and guidance. Traders are also monitoring macroeconomic indicators, as recent data, including weak consumer sentiment, hinted at a stalling U.S. economy despite persistent inflation.

Looking ahead, the Federal Reserve’s July meeting looms large, with market participants expecting a potential rate cut. On the fiscal front, President Trump’s $4.5 trillion tax-cut and border security package is heading to the Senate, a development that could influence market liquidity and investor sentiment.

With market volatility likely to persist, traders should focus on key earnings, Fed signals, and geopolitical developments to navigate the evolving landscape.

More Information in our Economic Calendar.