U.S. equities climbed on Friday as a blockbuster quarterly report from Intel reignited enthusiasm across the semiconductor sector and pushed the Nasdaq Composite back into positive territory. The tech-heavy index rose 0.6%, the S&P 500 added 0.3%, and the Dow Jones Industrial Average slipped 0.1%, as chipmaker strength offset lingering anxiety over the trajectory of the Iran conflict.
Intel Delivers a Blowout Quarter
Intel shares rocketed roughly 27% in Friday trading after the company posted first-quarter results that blew past Wall Street expectations. Revenue came in at $13.58 billion versus the $12.3 billion consensus estimate, representing a 7.2% year-on-year increase, while adjusted earnings per share hit $0.29 against an anemic $0.01 estimate.
The standout story inside the report was Intel's Data Center and AI segment, where revenue climbed 22% year-on-year to $5.1 billion. Management paired the beat with a forward guidance range of $13.8 billion to $14.8 billion for the second quarter — comfortably above sell-side models and a signal that demand is extending beyond the March quarter. The print marked Intel's sixth consecutive quarter of exceeding financial forecasts, a streak that has helped shares surge roughly 74% year-to-date.
Semiconductors Extend Historic Streak
Intel's report punctuated an already dominant run for chip stocks. The PHLX Semiconductor Index jumped about 4% at the open and was on track for its 18th consecutive winning session, while the iShares Semiconductor ETF (SOXX) logged its 17th straight positive session and is pacing for an 11% weekly gain.
The rally was not isolated to Intel. A day earlier, Texas Instruments shares posted their largest single-day gain in 25 years after the analog chipmaker reported its own upside surprise. Taken together, the back-to-back reports bolstered the bull case that semiconductor capital expenditure — particularly tied to AI infrastructure — remains resilient even as the broader macro picture wobbles.
Software Stumbles Underscore a Split Tape
Not every technology name participated. On Thursday, IBM shares tumbled more than 8% and ServiceNow slid nearly 18% following their quarterly reports, dragging software indexes lower and pulling the S&P 500 down 0.41% to 7,108.40 for the session. The divergence between hardware and software earnings is becoming a defining feature of the current reporting period, with chip-exposed names rewarded and enterprise software names punished for any hint of softness.
Geopolitics Still Looming
Investor sentiment remains caught between earnings optimism and geopolitical risk. Uncertainty around the Iran conflict and Strait of Hormuz tensions has kept oil prices elevated and weighed on cyclical pockets of the market. Friday's modest Dow decline of 0.1% — even as the Nasdaq advanced — illustrated how the tape is bifurcating: mega-cap tech and chipmakers leading, while energy-sensitive and defensive industrials lag.
What to Watch Next
With big tech earnings beginning in earnest and the Federal Reserve's next policy decision looming, traders will be watching whether semiconductor strength can broaden into the rest of the market. The S&P 500 is tracking roughly flat for April, the Dow is on pace for a 0.6% monthly decline, and the Nasdaq is up about 0.7% for the week — a set of readings that shows index-level calm masking sharp dispersion under the surface.
For now, Intel's turnaround narrative and the semiconductor complex's historic win streak are giving bulls the firepower to keep pushing higher into month-end, even as oil markets and Middle East headlines remain the wildcard that could quickly reshape the risk landscape.
Sources: CNBC, Yahoo Finance, Euronews, GuruFocus