The Nasdaq-100 is on track to deliver its strongest daily gain in more than a year.

The index tracked by the Invesco QQQ Trust, Series 1 (NASDAQ:QQQ) surged 3.5% in afternoon trading, on pace for its best session since May 2025, when the Trump administration’s 90-day tariff pause with China unleashed a relief rally across global equities.

This time, the catalyst was another proof yet that the artificial intelligence spending boom remains alive and well.

A blockbuster quarter from Microsoft Corporation (NASDAQ:MSFT) reassured investors that billions of dollars in AI investments are finally translating into faster cloud growth.

Lam Research Corporation (NASDAQ:LRCX) reinforced the same message from the other side of the AI supply chain, showing that chipmakers continue spending aggressively on the equipment needed to manufacture next-generation semiconductors.

Together, the two reports removed the biggest fears weighing on technology stocks this year: that hyperscalers would struggle to monetize AI, and that capital spending was beginning to slow.

The result was a powerful rally that spread well beyond the two companies.

Ten stocks delivered 308 of the 351 basis points the index gained, roughly 88% of the move from about a third of the index by weight.

Chart: Nasdaq 100 Eyes Strongest Session Since May 2025

The 10 Stocks Driving Thursday’s Nasdaq Rally

10. Broadcom Inc. (NASDAQ:AVGO) climbed 4.3%, contributing 13 basis points to the Nasdaq-100 despite representing 3.02% of the index.

9. SanDisk Corporation (NASDAQ:SNDK) surged 24.5%, adding 14 basis points despite carrying just a 0.72% weight in the index. The outsized move came after the high-flying memory player had slumped more than 50% from June’s highs.

8. NVIDIA Corporation (NASDAQ:NVDA) gained a more modest 2.0%, but thanks to its hefty 7.92% weight—the second largest in the Nasdaq-100—it still contributed 16 basis points to the index rally.

7. Amazon.com Inc. (NASDAQ:AMZN) rose 4.8%, contributing 20 basis points with a 4.20% index weight.

6. Applied Materials Inc. (NASDAQ:AMAT) jumped 14.8%, adding 22 basis points despite a relatively small 1.65% weighting. The stock rallied alongside Lam Research as investors bet semiconductor manufacturers will continue investing aggressively in fabrication equipment.

5. Intel Corporation (NASDAQ:INTC) advanced 13.0%, contributing 23 basis points with a 1.96% weight. The move extended the recent momentum in semiconductor stocks as investors rotated back into the AI hardware complex.

4. Lam Research Corporation soared 18.5%, contributing 24 basis points despite accounting for only 1.50% of the index. The chip equipment maker posted earnings and guidance that exceeded expectations, delivering its strongest trading session since March 2020 and reinforcing confidence that wafer fabrication spending remains healthy.

Lam Research CEO Tim Archer said AI-driven demand continues to “reshape the semiconductor industry.”

3. Advanced Micro Devices Inc. (NASDAQ:AMD) climbed 13.6%, adding 41 basis points thanks to its 3.33% weighting.

2. Micron Technology Inc. (NASDAQ:MU) rallied 18.1%, generating 62 basis points of the Nasdaq-100’s gain with a 3.96% weight. Micron had fallen close to 20% over the prior four sessions on underwhelming results from SK Hynix Inc. (NASDAQ:SKHY)

1. Microsoft Corporation was by far the day’s biggest driver. Shares surged 16.6%—their strongest one-day gain since October 2008—contributing 73 basis points to the Nasdaq-100 despite representing 5.00% of the index.

Investors cheered accelerating Azure growth and evidence that Microsoft’s massive AI investments are beginning to translate into stronger earnings without another significant increase in capital spending.

Microsoft CEO Satya Nadella said the company is helping customers “turn tokens into business results.”

The stock is heading for its best day since October 2008.

It added roughly $490 billion in market value, which would be the largest single-session market capitalization gain for any stock on record, surpassing the $440 billion Nvidia added during the April 2025 tariff pause.

What Comes After The Bell

Amazon.com and Apple Inc. (NASDAQ:AAPL) report after Thursday’s close, with attention on cloud capital spending at one and on hardware margins at the other, given the memory price increases now working through the supply chain.

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