Nasdaq Composite Reclaims Break-Even as Chip Stocks Power Rally

The Nasdaq Composite ended the trading session at 17,492.34, marking a 0.02% gain and returning to its break-even level for the month. The index had briefly dipped into negative territory earlier in the session before rebounding on strong momentum from semiconductor equities. Nvidia (NVDA) rose 3.7%, contributing the most to the index’s recovery, while AMD (AMD) advanced 4.2% and Intel (INTC) climbed 2.8% on renewed optimism around AI-driven chip demand and improved manufacturing efficiency. The rally was concentrated in the technology sector, which outperformed the broader market with a 1.1% gain. Semiconductor stocks accounted for nearly 40% of the Nasdaq’s daily upward movement, highlighting a pronounced rotation into high-growth, capital-intensive tech firms. The Russell 2000, in contrast, posted a modest 0.1% decline, indicating that the gains were not broad-based but rather driven by a few large-cap tech names. The performance of NVDA and AMD reflects stronger-than-expected demand forecasts for AI accelerators, with industry analysts revising Q1 revenue projections upward. Intel’s rebound was supported by progress in its 18A process node development and new data center partnerships. These developments suggest that the semiconductor industry may be entering a sustained expansion phase, particularly in AI infrastructure and advanced computing. Market participants are now watching upcoming earnings from major tech firms for further signals. The Nasdaq’s recovery underscores the continued influence of momentum in growth stocks, especially within the semiconductor subsector, which remains a key barometer for tech investment sentiment.