Shares of major technology companies surged this week, with AI-driven optimism and improving macro conditions fueling one of the strongest rallies in years. Oracle led the gains, rising 32% week-to-date and heading for its best weekly performance since 1999 after expanding its data center energy partnership with Bloom Energy.
Semiconductor firms also posted strong advances. Advanced Micro Devices climbed 13% for the week and reached a record high, extending a 12-day winning streak. Intel surged 55% in April following a series of partnerships, including collaborations with Google and companies tied to Elon Musk. Other chipmakers, including Broadcom, Micron Technology, Marvell Technology, and ON Semiconductor, also gained roughly 30% this month.
In software, Microsoft rose more than 14% for the week, rebounding from a weak first quarter. Tesla added 14% as it advanced development of its AI5 chip. The broader iShares Expanded Tech-Software ETF jumped about 15%, nearing its best weekly performance on record.
The rally follows a difficult period for software stocks, which had declined amid concerns that AI could disrupt traditional business models. Recent optimism, supported in part by easing geopolitical tensions, suggests renewed investor confidence in AI-driven growth, though the sector remains down roughly 20% year-to-date.
