AI Giants Spark Rally: Nasdaq Jumps 1%, Rises for Second Straight Day; Microsoft Soars Over 21% Weekly

U.S. technology stocks regained upward momentum following strong corporate earnings reports. The Nasdaq Composite Index rose 1% on Friday, primarily driven by Amazon's better-than-expected quarterly results, which boosted its share price and triggered renewed buying interest across the broader tech sector.

Earlier, the Nasdaq had surged 2.78% on Thursday, ending a three-day losing streak. While markets digested the Federal Reserve’s decision to hold interest rates steady, Microsoft (MSFT-US) released fourth-quarter earnings that significantly exceeded expectations, further bolstering investor confidence in the return on artificial intelligence (AI) investments.

Microsoft (MSFT-US) emerged as one of the top performers in the Nasdaq 100 this week, with its stock soaring 21.75%. The company reported adjusted earnings per share of $4.74 and revenue growth of 18% year-over-year to $90 billion, surpassing market forecasts. This performance underscores continued growth driven by cloud and AI-related businesses.

Amazon (AMZN-US) also benefited from positive earnings news, rising 17% for the week and becoming a key leader among tech stocks. The market believes Amazon’s strong performance helps alleviate recent concerns about excessive spending on AI infrastructure and overly long payback periods.

Beyond Microsoft and Amazon, enterprise software provider Workday (WDAY-US) climbed 18.47% this week, glucose monitoring device maker DexCom (DXCM-US) rose 16.65%, and biotech firm Regeneron Pharmaceuticals (REGN-US) gained 16.25%, all ranking among the top five gainers in the Nasdaq 100 this week.

On the downside, Alnylam Pharmaceuticals (ALNY-US) led the losses, plunging 24.38% for the week. The company hit a 52-week low earlier in the week after its second-quarter results missed market expectations—both revenue and profits fell short of analyst estimates, and it lowered its full-year product revenue outlook, citing headwinds in the ATTR-CM therapy market.

Additionally, storage device manufacturer Sandisk (SNDK-US) declined 15.43% this week; automotive and industrial chip supplier NXP Semiconductors (NXPI-US) dropped 14.89%; semiconductor equipment giant KLA Corporation (KLAC-US) fell 13.16%; and chip designer Qualcomm (Qualcomm) (QCOM-US) slid 11.60%, reflecting ongoing market caution toward certain semiconductor firms’ earnings and forward guidance.

This week, AI-related stocks reignited investor appetite for large-cap tech names, helping the Nasdaq recover some lost ground. However, capital rotation remains evident, with diverging performances across tech, biotech, and semiconductor sectors, indicating investors continue to focus on corporate earnings and the tangible returns from AI investments as key criteria for future positioning.

Top Gainers in the Nasdaq 100 This Week: - Microsoft: +21.75% - Workday: +18.47% - Amazon: +17.00% - DexCom: +16.65% - Regeneron Pharmaceuticals: +16.25%

Top Losers in the Nasdaq 100 This Week: - Alnylam Pharmaceuticals: -24.38% - Sandisk: -15.43% - NXP Semiconductors: -14.89% - KLA Corporation: -13.16% - Qualcomm: -11.60%