Nasdaq Climbs: AI Innovations Propel Chip Stocks Higher

Wall Street indexes rose prominently on Friday, led by the tech-heavy Nasdaq, due to Broadcom's optimistic AI chip revenue forecast. This uplifted related stocks and contributed to Broadcom surpassing a $1 trillion market cap for the first time. Federal Reserve's anticipated rate changes further influenced market trends.

On Friday, Wall Street's main indexes surged, with the Nasdaq leading the charge, bolstered by a positive revenue forecast from Broadcom that reignited excitement about artificial intelligence and boosted chip stocks.

Broadcom's quarterly revenue predictions exceeded Wall Street estimates, forecasting strong demand for its custom AI chips, driving its shares up more than 21%. This milestone pushed the company past the $1 trillion mark in market capitalization for the first time. 'It's no shock that stock performance in the AI sector captures investor enthusiasm,' commented Peter Andersen, founder of Andersen Capital Management.

The wave of optimism extended to other chip stocks, with Marvell Technology climbing 9.5%, while a semiconductor stock index gained 3.7%. Overall, U.S. stocks have soared to record highs several times this year, fueled by increasing investor interest in heavyweight tech stocks capitalizing on AI trends.

(With inputs from agencies.)