Advanced Micro Devices (AMD) closed Friday's session with an 8.2% gain, finishing at $208.44, as the semiconductor sector experienced a broad rally. The surge followed announcements from major cloud providers Amazon and Alphabet signaling significant increases in capital expenditures, primarily for data centers and artificial intelligence infrastructure.
AI Investment Fuels Chip Rally
The Philadelphia Semiconductor Index soared nearly 6% on the day, with optimism spreading across the chip sector. Nvidia's CEO Jensen Huang added to the positive sentiment, stating demand for AI hardware is "going through the roof" as cloud players accelerate spending. This comes after AMD reported fourth-quarter revenue of $10.3 billion earlier in the week, with first-quarter guidance around $9.8 billion.
Friday's rally helped the Nasdaq Composite advance 2.2% and pushed the Dow Jones Industrial Average above the 50,000 mark for the first time. Analysts noted that while AI-related selloffs occur, a consistent "floor" of demand appears to be forming from enterprise buyers.
Key Events on the Horizon
Investor attention now shifts to several upcoming events that could influence market direction. The U.S. Consumer Price Index for January will be released on February 13, providing crucial data on inflation trends that could affect interest rate expectations and tech valuations.
Additionally, Nvidia's fourth-quarter earnings report scheduled for February 25 represents the next major catalyst for the AI hardware sector. AMD will also be in focus on March 3 when Chief Technology Officer Mark Papermaster presents at Morgan Stanley's Technology, Media & Telecom conference.
With U.S. markets closed Sunday, traders will watch Monday's session to determine whether Friday's gains represent sustainable momentum or temporary enthusiasm. The trading week will be shortened by the Washington's Birthday holiday on February 16.
