Nasdaq Surges 1.5% to Record High as AI Hardware Stocks Soar

Stock News04-24 23:52

The Nasdaq Composite Index extended its gains to 1.5% on Friday, reaching a new all-time high, driven by a significant rally in artificial intelligence hardware stocks. Intel (INTC.US) surged over 23%, hitting a record high, while Advanced Micro Devices (AMD.US) climbed more than 14%, also achieving a new peak. NVIDIA (NVDA.US) and Taiwan Semiconductor Manufacturing (TSM.US) both rose over 5%, with ASML Holding NV (ASML.US) and Micron Technology (MU.US) advancing more than 3%. According to BlackRock's global chief investment strategist Wei Li, the asset management firm has increased its holdings in semiconductor and hardware stocks as part of its artificial intelligence strategy. Li stated on Friday that the AI industry is currently in a developmental phase, and it remains unclear whether model providers, computing providers, or companies with strong data and intellectual property will ultimately dominate. Citing the example of behind-the-meter power generation that does not rely on the grid, Li noted that advancements in energy production technology enable companies to boost capital expenditures. Combined with technology stock valuations having "normalized" to levels consistent with the broader market, these trends support BlackRock's overweight stance on AI and U.S. equities. She added that despite Middle East conflicts driving up oil and gas prices, particularly in Europe and Asia-Pacific, risk assets have demonstrated remarkable resilience. U.S. stocks have posted mid-single-digit gains, which Li attributes to America's relatively high energy independence and maintained favorable credit spreads.

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