Shares of Super Micro Computer (SMCI) and Advanced Micro Devices (AMD) powered a robust rally in technology stocks, driving the Nasdaq Composite higher on Wednesday. The tech-heavy index climbed 0.5%, outpacing broader market gains, as investors responded to a wave of positive news and renewed optimism in the artificial intelligence (AI) sector.
Super Micro Computer was the standout performer, surging 17.6% to $45.74. The rally was fueled by the announcement of a landmark $20 billion multi-year partnership with Saudi Arabian data centre company DataVolt. This deal, revealed late Tuesday, positions SMCI as a key supplier of AI-optimised server solutions to a rapidly expanding Middle Eastern technology market.
The momentum was further boosted by analyst coverage from Raymond James, which initiated SMCI with an Outperform rating and a bullish outlook, citing the company’s leadership in AI infrastructure and attractive valuation. SMCI’s stock has now extended its rally, building on a 16% gain from the previous session, and is trading well above its 50-day and 200-day moving averages.
AMD also delivered strong gains, rising 4.4% to $117.42 after its board approved a new $6 billion share buyback programme. The move, which increases AMD’s total authorised repurchases to $10 billion, was welcomed by investors eager for capital returns amid heightened competition in the semiconductor industry.
The buyback announcement follows AMD’s recent $10 billion AI partnership with Humain, underscoring the company’s commitment to expanding its AI footprint. Despite being down nearly 2% year-to-date, AMD’s stock has rebounded sharply, with Wednesday marking its best close since early February and extending its longest winning streak in months.
The broader tech rally was supported by gains in other AI and chip stocks, including Nvidia and Alphabet, as the sector benefited from easing US-China trade tensions and fresh AI investment initiatives in the Middle East. Market sentiment was further buoyed by strong quarterly results from key suppliers and a reduction in recession fears following positive economic data.
With SMCI and AMD at the forefront, the Nasdaq’s advance highlights the continued investor enthusiasm for companies at the heart of the AI revolution. As partnerships and capital returns drive sector momentum, technology stocks remain the engine of US market gains in 2025.
