Philadelphia Semiconductor Index rises 1.2%, bucking the broader market trend as signs of increasing investments in AI spurred bets of higher demand for chips that support the technology.
Broadly, Meta Platforms drops 13%, weighing on tech peers and pulling the S&P 500 1.3% lower after the Instagram parent forecast higher AI expenses and lighter-than-expected revenue.
"Semis are broadly stronger, buoyed by META's capex spend (at least $70 bln over next 2 years)" - J.P.Morgan traders' note.
AI bellwether Nvidia firms 2%, while Broadcom, Marvell Technology and Lam Research advance between 1.6% and 4%.
Alphabet and Microsoft , slated to report quarterly results after markets close, said earlier this year they expected AI costs to rise.
Semiconductor-testing equipment maker Teradyne climbs 6.7% after upbeat forecast.
SOX up 10% YTD on AI boost compared to 5% gain in SPX.
