The semiconductor complex dominated overnight gains, with AMD surging 18%, SMCI jumping 24.1%, and ASML climbing 6.7% on accelerating AI infrastructure demand and strong earnings beats. The broader market followed, with SPY +1.38%, QQQ +1.95%, and the semiconductor-heavy SOXL exploding +14.01%. Outside tech, healthcare delivered outsized beats (DVA +21.2%, IFF +17.8%, CVS +7.8%), while energy stocks broadly retreated—DVN -8.1%, OXY -7.4%, VLO -7.2%—as investors priced in potential oil headwinds from Iran peace negotiations. Notably, CDW and ANET declined sharply (-20.8%, -16.0%) despite strong AI fundamentals, suggesting profit-taking after recent rallies.
Buy semiconductors and AI infrastructure plays on dips:** AMD, NVDA, KLAC, and ASML show genuine earnings-driven momentum with structural AI tailwinds; consider rotating into underperformers like ANET if technicals stabilize. **Avoid energy longs** until Iran deal clarity emerges—the sector's downside risk outweighs current valuations. **Trim tech positions** in beaten-down names like CDW that met guidance but sold off anyway; better opportunities exist in healthcare (CVS, DVA) and industrials (CARR, CMI) where beats are driving genuine upside.