Wall Street has reached new record highs, rebounding from previous losses thanks to a strong performance in chip stocks and an impressive U.S. jobs report for April. The rally comes amidst ongoing geopolitical tensions in the Strait of Hormuz and the broader Middle East, but several key players on the stock market have enjoyed significant gains.
AMD led the charge, reporting first-quarter results that surpassed analysts’ expectations, resulting in a massive 26% increase in its stock over the week. On Friday alone, shares climbed an additional 9.1%, reaching unprecedented levels. Bernstein analyst Stacy Rasgon highlighted the company’s consistent performance, stating, “We have continually been surprised not only by the strength of AMD’s business but also by the strength of the stock.” Rasgon emphasized that the fundamentals behind AMD’s story appear increasingly robust.
Intel also had a stellar week, with its stock skyrocketing by an additional 36.3% to over $126 following reports of a preliminary agreement to manufacture chips for Apple devices. This collaboration has reinvigorated investor confidence in the tech giant.
In the realm of memory stocks, both Micron and Sandisk set records on Friday, with Micron shares experiencing a remarkable 44% gain in the past week, while Sandisk rose 42.4%. Sandisk’s recent quarterly earnings report exceeded expectations, further driving its stock price upward.
Nvidia, which had seen a dip in performance, rebounded significantly this week, recording a nearly 7% increase and trading around $215.25 per share. Goldman Sachs reaffirmed a Buy rating and set a price target of $250 ahead of Nvidia’s upcoming results. Analyst James Schneider noted the potential for re-rating the stock based on improving profitability metrics, increasing enterprise adoption of AI, and enhanced visibility into deployments at non-traditional customers.
Another notable performer, IREN, saw its shares surge by 31.4% driven by a strategic partnership with Nvidia to deploy substantial AI infrastructure across its global data centers. This partnership aims to implement Nvidia’s DSX-aligned AI infrastructure and accelerated compute systems.
Qualcomm shares also reached their highest levels since June 2024, buoyed by trends in AI momentum, a collaboration with OpenAI to develop smartphone processors, and an upgrade from Daiwa analysts. Compounding these factors, former President Trump has invited Qualcomm executives to join him on a trip to China next week, further enhancing investor optimism.
Conversely, oil stocks have experienced a downturn, with prices declining amid reports of a potential peace deal between the U.S. and Iran. Traders remain apprehensive due to fresh clashes in the Strait of Hormuz. Shares in several oil companies, including notable declines of 5.2% by one firm, 10.9% by another, and others retreating by 8.5% and 10.7%, reflect the changing sentiment as hopes for a diplomatic resolution linger.
Overall, the combination of strong corporate earnings and strategic partnerships has driven market optimism, contrasting sharply with the cautious approach still prevalent in the energy sector.
