AI Investment Skyrockets to $380B by Tech Titans, Fueling Market Rally
Four of the tech industry’s “Magnificent Seven” have pledged an impressive $380 billion towards AI infrastructure development in 2025. This marks a substantial 54% year-over-year increase in capital expenditure on the AI ecosystem. The Dow Jones Industrial Average rose 0.5% to close at 47,311.00, while the tech-centric Nasdaq Composite gained 0.7% to end at 23,499.78.
Major earnings beats were the driving force behind market optimism. Amgen shares soared 7.8% after reporting third-quarter adjusted earnings of $5.64 per share, exceeding consensus estimates of $5.00. Exelixis surged 6.5% on earnings of $0.78 per share, outpacing expectations of $0.68. McDonald’s also had a strong showing, rising 2.2% after posting revenues of $7,078 million, surpassing analyst estimates.
The broader market demonstrated resilience, with 16 of the 30 Dow components finishing in positive territory. The Consumer Discretionary and Materials sectors led gains with 1.25% and 0.6% increases respectively. The fear gauge VIX dropped 5.2% to 18.01, and advancers outnumbered decliners on the NYSE by a 2.09-to-1 ratio. This signals continued investor confidence in the AI-driven market rally.
Source: Yahoo Finance