Nasdaq 100 Hits Record High as Intel Surges on AI-Driven Earnings Beat
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NEW YORK (AP) — The Nasdaq 100 index reached a record high Thursday, propelled by a 23% surge in Intel Corp. shares following a strong earnings report that reinforced demand for artificial intelligence servers. The broader market advanced as investors responded to the semiconductor giant’s results, though energy and cable sectors faced headwinds.
Intel, which had been under pressure amid concerns over its manufacturing and competitive position, reported quarterly revenue and profit figures that exceeded analyst forecasts. The company’s stock jumped significantly in afternoon trading, lifting the Technology Select Sector SPDR Fund and contributing to the Nasdaq’s milestone close. The rally underscored renewed investor confidence in the AI infrastructure build-out, with Intel positioning itself as a key beneficiary of the trend.
The S&P 500 and Dow Jones Industrial Average also posted gains, while the Russell 2000 small-cap index showed modest strength. Market breadth was broad, with technology stocks leading the advance. However, not all sectors participated in the rally. Charter Communications shares declined, reflecting ongoing concerns about consumer spending and regulatory pressures in the cable industry. Similarly, West Texas Intermediate (WTI) crude oil prices fell, weighed down by inventory data and global demand uncertainties.
The Energy Select Sector SPDR Fund mirrored the weakness in oil prices, closing lower despite gains elsewhere in the market. The divergence highlighted the mixed nature of the trading session, where AI-related optimism offset broader economic concerns. Analysts noted that Intel’s performance could signal a turning point for the semiconductor sector, which has struggled with inventory corrections and slowing PC demand in recent quarters.
Intel’s earnings call emphasized robust demand for its data center and AI accelerator products, with management citing strong order books and improved production yields. The company also outlined plans to expand its foundry services, aiming to capture a larger share of the custom chip market. Investors appeared to reward the strategic clarity, driving the stock’s sharp ascent.
Despite the positive momentum, questions remain about the sustainability of the rally. Some analysts cautioned that the market’s reliance on a handful of technology stocks could create volatility if earnings disappoint in the coming weeks. Additionally, the Federal Reserve’s interest rate policy remains a key variable, with inflation data and employment reports expected to influence investor sentiment in the days ahead.
As the trading day concluded, the Nasdaq 100’s record close marked a significant moment for the tech-heavy index, but the mixed performance across sectors suggested a cautious outlook. Investors will be watching closely to see whether Intel’s earnings beat can translate into sustained growth for the broader technology sector or if it remains an isolated event in a complex market environment.