The AI sector experienced a significant surge on Friday, driven by Intel’s impressive first-quarter performance and optimistic second-quarter guidance. This report underscored rising CPU demand linked to agentic AI, boosting shares of industry peers like AMD and Arm Holdings by over 10%. Taiwan Semiconductor also saw a 5% jump, reflecting strong chip demand, while the iShares Semiconductor ETF, which includes key AI chip players like Nvidia, gained 5% as well.

As we approach the peak of tech earnings season, attention turns to the “Magnificent Seven” companies, including Alphabet and Microsoft, set to report on April 29 and 30. These tech giants are investing heavily in AI infrastructure, with combined capital expenditures reaching approximately $700 billion this year. Investors should closely monitor Alphabet’s developments in AI, particularly its Gemini model and cloud growth, while Microsoft’s results will reveal insights into its AI adoption and cloud performance.

The upcoming earnings reports could catalyze further growth in the semiconductor sector, particularly if they indicate strong demand for AI-related chips. With valuations for AI start-ups soaring and demand outpacing supply, positive signals from these tech leaders may sustain the momentum in AI stocks.

Source: fool.com