Tech Stocks Experience Significant Comeback
The Nasdaq Composite has regained all losses incurred since President Donald Trump’s ‘Liberation Day’ tariff announcement on April 2, thanks to robust first-quarter earnings from tech giants Microsoft and Meta Platforms. The tech-heavy index surged as much as 20% following the Trump administration’s decision to rescind some tariffs and implement a 90-day pause.
Meta Platforms raised its 2025 capital expenditure guidance to $64 billion to $72 billion, up from $60 billion to $65 billion previously. This increase signals continued growth in AI infrastructure investment. CFO Susan Li emphasized that the significant infrastructure buildout will help meet current business demands while providing an advantage in AI service quality and scale.
Microsoft also highlighted AI’s importance during its earnings call. CEO Satya Nadella stated, “Cloud and AI are the essential inputs for every business to expand output, reduce costs, and accelerate growth.” The company’s Azure cloud business reported 33% year-over-year revenue growth, with 16% attributed to AI.
The positive earnings results from these tech leaders boosted AI-related stocks. Nvidia rose as much as 5%, while Arista Networks, Vistra, CoreWeave, and Vertiv also saw significant gains. As of 11:10 a.m. ET, major US indexes stood at:
- S&P 500: 5,652.21, up 1.5%
- Dow Jones Industrial Average: 41,053.19, up 0.93% (+376.35 points)
- Nasdaq Composite: 17,895.36, up 2.6%
Wall Street analysts responded positively to Meta’s results, with Bank of America maintaining its “Buy” rating and raising its price target to $690 per share, representing a potential 16% increase.
The AI infrastructure buildout appears to be continuing without slowdown, despite recent advancements like the DeepSeek model from a Chinese startup. Microsoft reiterated its plan to spend $80 billion in capital expenditures this year, further emphasizing its commitment to AI development.
