Semiconductor Surge Propels Nasdaq 100 Toward Record Territory

Fueled by a powerful rally in chipmaker stocks, the Nasdaq 100 closed Tuesday's session within striking distance of its all-time peak. Investor enthusiasm, ignited by a flurry of artificial intelligence announcements at the Consumer Electronics Show (CES) in Las Vegas, flowed decisively into the semiconductor sector.

The index concluded trading at 25,639 points, maintaining a position well above its key moving averages. Market technicians note the immediate resistance level sits at Tuesday's intraday high of 25,655. A decisive break above this barrier could pave the way for a move toward the 26,000-point milestone. On the downside, initial support is established in the breakout zone near 25,500 points, with a more critical test likely around 24,800 should a pullback deepen.

Momentum indicators suggest the rally may be extended. The Relative Strength Index (RSI) is approaching the 70 level, often viewed as overbought territory. A brief period of consolidation would not be unexpected before the index attempts to resume its upward trajectory.

Should investors sell immediately? Or is it worth buying NASDAQ 100?

Chip Stocks Lead the Charge

The day's most significant gains were concentrated among semiconductor companies. Microchip Technology shares soared more than 10.5% after the firm raised its financial forecasts. Close behind, Micron Technology advanced approximately 10%, driven by reports that its high-bandwidth memory chips are sold out through the end of 2026. This underscores the seemingly insatiable demand for advanced memory solutions from AI data centers.

The bullish sentiment spread across the industry. NXP Semiconductors climbed 7.7%, while semiconductor equipment provider Lam Research gained 7.3%, as capital rotated into chip-related equities. Even sector behemoth Nvidia added a further 1.7%, solidifying its price above $191. Market strategists cited excitement over the company's upcoming "Vera Rubin" superchip architecture as a contributing factor.

Wednesday's Outlook and Key Levels

As Wednesday's session began, futures for the index were trading nearly flat. Investors are continuing to digest developments from CES while turning their attention toward the upcoming U.S. jobs report scheduled for Friday. Market observers suggest that if the Nasdaq 100 can hold support above the 25,500-point level, a retest of Tuesday's high is probable. A slip below that zone, however, could trigger profit-taking in the high-flying semiconductor names that have driven the recent advance.