On Friday, U.S. stocks rallied early as technology shares recovered after more than a week of selloffs. The move followed a reassessment of AI disruption risks and Big Tech spending concerns.
The S&P 500 rose 1.7% and approached its best day since May. The Dow Jones Industrial Average gained about 1,060 points, roughly 2.2%, by 1 p.m. Eastern.
Chip makers led the advance, with Nvidia rising about 7.3% and trimming its weekly loss. Broadcom climbed roughly 7.5%, erasing its week-to-date decline.
Analysts noted expected Big Tech AI spending of about $650 billion in 2026 could help chip demand. (Ed. note: This projected investment may drive sustained demand for AI chips.)
The company holds a Zacks Rank of #2 (Buy) and retains strong analyst support. Price targets range near $220 to $320, with Cantor Fitzgerald at $300, Melius Research at $320, and DA Davidson at $250.
Some tech slumps continued despite the rally. Amazon shares fell about 7% after earnings, and the company said it plans to increase 2026 spending to at least $200 billion while forecasting lower operating income.
Alphabet and Meta also traded lower on Friday. Nvidia‘s return toward $200, as it did last fall, is being watched as a possible turning point.
