Nasdaq Hits Record as AI Chip Stocks Rally

The rally came even as the broader S&P 500 ended nearly unchanged at 7,764.64 and the Dow lost 0.36%. Trading was active, with combined U.S. exchange volume at 17.9 billion shares, above the 20-day average of 16.3 billion.

Meta Platforms’ rollout of its AI assistant Muse has helped fuel the latest bid for semiconductor and AI-related stocks, reinforcing investor bets that the spending cycle around artificial intelligence is still expanding rather than peaking. Nvidia rose to 225.07, while Microsoft advanced to 516.17, keeping the largest technology names near the center of the index’s gains.

The move matters economically because AI infrastructure spending is now doing the work that weaker parts of the market are not. Financials fell 1.68% after JPMorgan Chase and Wells Fargo dropped more than 3%, while consumer-facing software and internet names slipped on concern Muse could compete with retailers, online brokers and ride-hailing platforms.

Uber and Lyft both fell more than 1%, Charles Schwab sank 6.1% and Airbnb lost 3%, showing that the market is beginning to price AI not just as a growth catalyst, but as a competitive threat across multiple sectors. That split helped keep the S&P 500 flat even as semiconductor shares extended their lead.

The geopolitical backdrop is also shaping positioning. Traders are watching the U.S.-China summit scheduled for Sept. 24, with any sign of reduced tension likely to matter most for chipmakers, hardware suppliers and other companies exposed to cross-border trade.

The main market risk from here is whether the AI trade can keep carrying the indexes if Washington and Beijing disappoint, or if the rally broadens beyond semiconductors. For now, investors are treating the combination of record AI enthusiasm and summit expectations as enough to keep buying dips in the Nasdaq.