TECH POWERS STOCK RALLY ON AI TRADE MOMENTUM

Major tech companies led the market higher amid expectations that AI-related investment will sustain earnings growth across the semiconductor industry. The rally signals investor appetite remains strong for the AI trade despite recent volatility in chip stocks. Traders are betting that enterprise spending on AI infrastructure and deployment will continue at a robust pace, underpinning profitability for chipmakers and their suppliers. The rebound halted losses from the previous two sessions, suggesting the market correction may have been temporary. Analysts pointed to the fundamental case for continued AI investments by tech giants and enterprises expanding their capabilities in machine learning and generative AI applications. Shana Sissel, founder and CEO of Banríon Capital Management, indicated the sector still has room to grow despite valuations already reflecting significant AI optimism. The outlook hinges on whether companies can deliver earnings that justify current stock prices as competitive pressures and capital intensity increase across the technology landscape.