Broadcom's AI Forecast Fuels Nasdaq Gains Amid Market Enthusiasm

Broadcom's robust AI revenue forecast sparked a premarket surge in its shares, boosting enthusiasm in chip stocks and leading to gains in the Nasdaq index, despite weekly declines for the S&P and Dow. The AI sector remains a focal point for investors, with major tech stocks reaching record highs.

Wall Street's key indexes are set for a positive open on Friday, propelled by an upbeat revenue prediction from Broadcom. The company projected substantial demand for its AI chips, resulting in a 17.2% premarket increase in share value, fueling optimism in the sector.

This positive sentiment lifted rival chip stocks, with Marvell Technology, Micron Technology, and Nvidia experiencing notable gains. The Nasdaq, outperforming other indices, was poised for a strong weekly finish, driven by the technology sector's continuous rally.

Adding to the optimism, speculation of a federal interest rate cut bolstered market sentiment. Meanwhile, shares of Salesforce advanced following a rating upgrade, and RH saw a significant jump after reporting increased quarterly revenue.

(With inputs from agencies.)