Tech stocks rebounded early Friday after over a week of selloffs, with Nvidia leading the charge as NVDA rose 7%. US stocks jumped on Friday as Wall Street reassessed worries about the impact of AI disruption and the risks of hefty Big Tech spending.
The S&P 500 jumped 1.7% Friday and was flirting with its best day since May. The Dow Jones Industrial Average soared 1,060 points, or 2.2%, as of 1 p.m. Eastern time, and the Nasdaq composite was 2% higher. Chip companies helped drive the widespread rally, and Nvidia jumped 7.3% to trim its weekly loss, which came into the day at just over 10%. Broadcom climbed 7.5% to erase its drop for the week fully.
Additionally, Nvidia (NVDA) is positioned to benefit from the expected $650 billion AI investment by Big Tech in 2026, despite market volatility affecting tech stocks. Analysts maintain a strong Buy rating on Nvidia, highlighting its potential in the AI sector as the market stabilizes after recent corrections. The sector as a whole appears ready to rebound from the recent losses, and Nvidia could play a big part in that should this be the start of a rally higher again.
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On the other hand, some tech stocks’ slumps persisted. Amazon’s (AMZN) shares tumbled 7% on Friday. In its earnings, the major cloud provider outlined plans for a massive 2026 jump in spending to at least $200 billion, even as its forecast for operating income fell short. Shares in Alphabet (GOOGL) and Meta also fell on Friday.
NVIDIA’s return to $200 as it did last Fall is seen as a potential turning point for tech stocks. To open 2026, things have been rocky, but NVDA’s inevitable rebound, as a market leader, could fuel other tech stocks to rally. NVIDIA (NVDA) holds a Zacks Rank of #2 (Buy), indicating strong analyst confidence in its earnings potential. Furthermore, Analysts maintain a bullish outlook on Nvidia with price targets ranging from $220 to $320. Cantor Fitzgerald and Melius Research have the highest price targets at $300 and $320, respectively. In addition, DA Davidson recently upgraded Nvidia’s rating, maintaining a Buy with a target of $250, showing confidence in NVDA