Shares of Intel surged 13% on Tuesday, igniting a rally that lifted the Nasdaq Composite to a fresh record and pushed the S&P 500 to new highs. The jump came as investors cheered a surge in memory‑chip orders, a sector that has been feeding the broader market’s momentum and reinforcing optimism about tech earnings today.

The PHLX semiconductor index, a barometer for chip makers, has climbed 54% since the end of March, marking its strongest 25‑day stretch since March 2000. That rally reflects mounting demand for specialized processors that power artificial‑intelligence workloads, prompting manufacturers to race for capacity and prompting a scramble for new fab investments across Asia and the United States.

Energy stocks lagged as oil prices slipped on hopes that easing tensions in the Middle East could curb demand. The decline tempered the rally but left the broader indices firmly in the green, underscoring how chip‑driven growth is now the market’s primary engine. Investors are watching inventory builds at major fabs, which could influence earnings season later this year.

With AI‑centric chips fueling demand, semiconductor stocks are set to remain a decisive factor in equity performance. Market participants should weigh supply‑chain constraints and pricing power when sizing exposure to the sector, as any slowdown could reverberate across the Nasdaq and S&P 500. Recent earnings reports from leading firms show margin expansion, reinforcing the sector’s appeal to growth‑oriented investors.