Euphoria in Tech Stocks Fueled by AI Boom, Broadcom Leads the Surge

U.S. stock futures rose with the Nasdaq 100 leading, driven by Broadcom's strong AI chip forecast. Broadcom's revenue predictions exceeded Wall Street's expectations, boosting investor interest. Optimism increased among other chip stocks, further supported by a potential Federal Reserve rate cut. Market sentiment remains positive following notable gains in tech sectors.

U.S. stock index futures experienced a surge on Friday, with the Nasdaq 100 taking the lead, following an optimistic outlook from chipmaker Broadcom. The company's upbeat forecast helped maintain the excitement surrounding artificial intelligence investments.

Broadcom predicted higher-than-expected quarterly earnings on Thursday, projecting significant demand for its custom AI chips in coming years. This enthusiastic outlook pushed its shares up by 15% in premarket trading. Investment analyst Dan Coatsworth noted that investors see Broadcom as an alternative to Nvidia for capitalizing on the AI boom.

This bullish sentiment spread to other chip stocks, including Marvell Technology and Micron Technology, amid an ongoing rally that's driving the Nasdaq to historic highs. Contributing to the momentum, an expected 25-point rate cut by the Federal Reserve has investors hopeful. Meanwhile, Wall Street anticipates December with optimism as U.S. equities ended November positively following Donald Trump's election victory.

(With inputs from agencies.)