Tech Weekly: Nasdaq Ends Week on High Note After Bellwether AI Stock Earnings

This week's tech sector performance

Markets started the week under pressure on Monday (May 18) as rising US treasury yields, higher oil prices and renewed US-Iran tensions weighed on investor sentiment.

The pressure dragged into Tuesday (May 19) as the S&P 500 (INDEXSP:.INX) and Nasdaq Composite (INDEXNASDAQ:.IXIC) posted a third straight day of declines.

The 10 year yield climbed to 4.687 percent, its highest level since January 2025.

Sentiment improved on Wednesday (May 20), with technology and chip stocks rising ahead of NVIDIA's (NASDAQ:NVDA) results for its first fiscal quarter of 2027. The company’s strong report and US$80 billion share buyback plan lifted semiconductor sentiment, though the stock was still volatile in after-hours trading.

On Thursday (May 21), markets in both the US and Canada moved higher, with the S&P/TSX Composite Index (INDEXTSI:OSPTX) nearing its March 2 record high. The PHLX Semiconductor Sector (INDEXNASDAQ:SQX) also advanced after NVIDIA's upbeat outlook, while news that the Trump administration will award CHIPS Act funding to nine quantum computing companies added another boost to tech shares.

Friday’s (May 22) session was supported by AI sector momentum and geopolitical developments after Iranian media reported that the country’s foreign minister met Pakistan’s interior minister to discuss proposals to end the war. The Nasdaq Composite finished up 0.33 percent for the week.

3 tech stocks moving markets this week

This week's top tech stock movers, according to TradingView data, were:

1. Arm Holdings (NASDAQ:ARM)

Arm Holdings saw a 42.48 percent increase in its share price.

2. DexCom (NASDAQ:DXCM)

DexCom, a healthtech company that develops and manufactures continuous glucose monitoring systems for diabetes management, finished the week up 20.7 percent after activist investor Elliott Investment Management disclosed a major stake in the company last week. A collaborative deal includes the appointment of two new independent directors and the restructuring of a key board committee.

3. Qualcomm (NASDAQ:QCOM)

Qualcomm ended the week 18.94 percent higher.

Top tech news of the week

• At Google I/O, its annual developer conference, Google (NASDAQ:GOOGL) announced it is integrating AI agents into its search engine, allowing automated tracking of criteria such as stock prices and rentals, as well as AI shopping tools spanning search, Gmail, Gemini and YouTube. New smart glasses designs from partners Warby Parker (NYSE:WRBY) and Gentle Monster were also unveiled at the event; they feature Gemini-powered capabilities that will directly compete with Meta Platforms' (NASDAQ:META) Ray-Ban glasses. Also this week, Google said it is partnering with Blackstone (NYSE:BX) to provide AI computing capacity using its tensor processing units.

• Analog Devices (NASDAQ:ADI), a semiconductor manufacturer, announced a deal to acquire Empower Semiconductor for US$1.5 billion. Empower specializes in the production of power-delivery chips.

• SpaceX filed its Form S-1 registration statement on Wednesday, revealing strong top-line growth alongside major losses, heavy CAPEX and US$29.1 billion of long-term debt. The details have prompted analysts to question whether the company’s sky-high valuation target of around US$1.75 trillion is justified, flagging Starship delays and regulatory risk. Governance concerns were also raised after the filing showed Elon Musk controls over 85 percent of the voting power.

• OpenAI is reportedly preparing to confidentially file for an initial public offering as soon as Friday, according to sources for CNBC and the Wall Street Journal. This week, the company said its new reasoning model produced an original proof that disproves the unit distance problem, a longstanding conjecture in combinatorial geometry first posed by Paul Erdős in 1946.

• Smart ring maker Oura confidentially filed a draft registration statement on Form S-1 with the US Securities and Exchange Commission on Thursday.

• A new AI enterprise services firm backed by Anthropic, Blackstone and Hellman & Friedman announced its acquisition of Fractional AI, a San Francisco applied AI services company. The company's aim is to help mid-size companies bring Claude into their core operations.

• The US Department of Commerce said it will award US$2 billion in grants and take equity stakes in nine quantum computing firms. The department plans to provide incentives for GlobalFoundries (NASDAQ:GFS) and IBM (NYSE:IBM) to help establish and accelerate foundational domestic manufacturing capacity, and will also provide capital for an initial portfolio of seven companies addressing unresolved engineering problems in multiple quantum modalities. The companies are Atom Computing, Diraq, D-Wave Quantum (NYSE:QBTS), Infleqtion (NYSE:INFQ), PsiQuantum, Quantinuum and Rigetti Computing (NASDAQ:RGTI). IBM will receive US$1 billion, which the company said it will match with another US$1 billion to build Anderon, the first pure-play US quantum chip foundry.

• NVIDIA’s latest quarterly results show that its revenue hit US$81.6 billion, up 20 percent from the previous period and 85 percent year-on-year. The firm's net income rose to US$42.96 billion, or US$1.76 per share. The company also authorized an US$80 billion share repurchase program, offering a strong signal of confidence and cash generation. Data center demand remained the core driver of growth, while China exposure and supply chain expansion remained key watch points.

• The signing of a proposed AI executive order was postponed on Thursday, with US President Donald Trump remarking that he “didn't like certain aspects of it" and expressing concerns that it might impede US leadership in AI. The delay highlights ongoing divisions in Washington between proponents of robust safety oversight and those favoring a lighter regulatory approach.

Tech ETF performance

Tech exchange-traded funds (ETFs) track baskets of major tech stocks, meaning their performance helps investors gauge the overall performance of the niches they cover.

This week, the iShares Semiconductor ETF (NASDAQ:SOXX) increased by 3.88 percent, while the Invesco PHLX Semiconductor ETF (NASDAQ:SOXQ) gained 6.66 percent.

The VanEck Semiconductor ETF (NASDAQ:SMH) increased by 2.16 percent.

Tech news to watch next week

SpaceX and OpenAI are likely to remain in focus next week as investors watch whether their initial public offering filings move from paperwork to a clearer launch timeline.

In Canada, the Big Six banks will begin reporting Q2 earnings; analysts are already flagging valuation concerns.

The trading period will be shortened by the Memorial Day holiday in the US, which could make liquidity thinner and price moves choppier than usual.