Nasdaq Composite eyes breakout to all-time high backed by strong chipmaker results

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Sholanke Dele

16.10.2025

Nasdaq Composite eyes breakout to all-time high backed by strong chipmaker results — Nasdaq rises on AI-driven earnings

The Nasdaq Composite Index extended its weekly recovery on Thursday as optimism surrounding artificial intelligence continued to drive risk appetite across major U.S. technology stocks.

Futures tied to the index climbed 0.5% in the premarket session, adding around 134 points and setting up another day of gains after last Friday’s tariff-driven selloff.

- Nasdaq futures advance 0.5% as TSMC earnings sparks renewed AI optimism.

- Golden cross pattern forms on hourly chart, signalling potential continuation of bullish momentum.

- Nvidia, Micron, and Broadcom join rally as AI earnings sustain Nasdaq’s weekly rebound.

The current momentum stems from strong corporate earnings in the semiconductor sector. Taiwan Semiconductor Manufacturing Company (TSMC), the world’s largest chipmaker, reported a record quarterly profit and raised its full-year revenue forecast on expectations for stronger global demand in artificial intelligence infrastructure. TSMC’s U.S.-listed shares gained over 2.2% premarket, helping fuel optimism across the tech-heavy Nasdaq.

Nasdaq price dynamic (Sept - Oct 2025). Source: Tradingview

Following the report, shares of major U.S. chipmakers joined the rally. Nvidia added 1.1%, Micron Technology advanced 2.9%, and Broadcom gained 1.8%. These movements reflected the broader market’s confidence that AI-related spending will continue to support technology valuations even in the face of economic uncertainty. The upbeat tone also built on gains from the prior session, when ASML’s solid quarterly update and a $40 billion data centre partnership involving BlackRock and Nvidia signalled strong institutional confidence in AI infrastructure growth.

Nasdaq futures technicals highlight golden cross and rising pattern formation

Technically, the Nasdaq futures show significant signs of renewed strength. On the hourly chart, the 20 exponential moving average (EMA) has crossed above both the 50 and 100 EMAs, forming a golden cross pattern that typically signals bullish momentum. This crossover has created a new support zone near the 20 EMA, suggesting a potential base for further upside. The index’s price movement this week has also been confined within a rising converging pattern, a structure often preceding a strong directional breakout.

If buying pressure accelerates and volume expands above Wednesday’s high, the breakout could drive the index toward its previous all-time high. However, the strength of the move will depend on whether the positive sentiment from corporate earnings sustains through the ongoing earnings season and upcoming macroeconomic events, including further signals on interest rates from Federal Reserve officials.

In summary, AI-related optimism and monetary policy expectations have set a constructive tone for Nasdaq’s short-term trajectory. A confirmed breakout above the current pattern would validate the bullish technical setup, potentially extending gains toward untested highs in the sessions ahead.

We discussed the Nasdaq Composite rebounding 2.2% from the 22,200 support after last week’s dip. Renewed U.S.–China trade tensions continue to cap upside momentum and RSI signalled fading strength.

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