Oracle, Microsoft and AMD Rally on AI Deal and Sector Rotation

Oracle, AMD and Microsoft led a broad rebound in technology stocks this week as a mix of company announcements and shifting fund flows pushed several names to multi-year gains.

Oracle climbed 27% for the week after expanding an AI data-center power agreement with Bloom Energy to secure 1.2 gigawatts of capacity. The company had also received a warrant to buy $400 million of Bloom shares in the prior week. Oracle’s weekly advance was its largest since June 1999.

Advanced Micro Devices rose 14% for the week and reached an all-time high on Thursday. The stock logged 13 consecutive trading-day gains during the stretch, which lifted the share price more than 42% from the start of that streak, the longest winning run for the company in over two decades.

Microsoft gained 14% for the week, its strongest weekly performance since April 2015. The software company had experienced a sharp sell-off in March, losing almost a quarter of its market value in what was its worst quarter since 2008. Traders pointed to a return of investor interest in established software names and suppliers to the semiconductor industry as a factor in the rebound.

Strength extended across chipmakers and related suppliers. Broadcom, Micron and ON Semiconductor each rose about 30% so far in April, while Marvell Technologies gained roughly 41% on the month. The iShares Expanded Tech-Software ETF (IGV) was up about 14% week to date, on track for its best weekly result since October 2001, and the SPDR Information Technology ETF (XLK) closed at a record after 13 straight trading-day gains.

Market participants cited a combination of company-specific developments and a changing macro outlook. Some traders pointed to easing geopolitical tensions, including hopes for progress toward a U.S.-Iran agreement, as a factor that eased risk premiums and allowed funds to reallocate capital into previously sold-off technology stocks.

Tesla joined the rally, rising about 15% for the week after the company announced a milestone on its in-house AI5 chip. Analysts expect Tesla to report first-quarter revenue of $22.08 billion, down about 9% from a year earlier, adjusted EPS of $0.35 and adjusted EBITDA of $3.217 billion, a decline of about 14.4% year over year. The company reported global deliveries of 358,023 vehicles in the first quarter, below the 364,645 estimate but up 6.3% from the prior year amid a production transition for one model.

Analysts and traders noted that recent gains were concentrated in a set of names and that broader fund flows and upcoming earnings reports will determine whether the sector’s rally continues.