The broad market opens with modest gains across equities—SPY and QQQ both up ~0.75% overnight, with leveraged tech plays TQQQ (+2.36%) and SOXL (+1.98%) showing strength. Cisco's 13.5% surge after crushing Q3 earnings and issuing AI-driven guidance anchored the tech rally, while Broadcom (+5.7%) joined the party on Wells Fargo's raised price target citing AI semiconductor revenue 30-40% above expectations. However, Qualcomm (-5.7%) and Jack Henry (-5.7%) stumbled on profit-taking, suggesting selective positioning in the semiconductor space. Outside tech, transportation benefited from tailwinds (JBHT +6.8% on Supreme Court ruling favoring large carriers), gaming surged on GTA VI anticipation (TTWO +6.5%), and real estate struggled (CBRE -5.0%) amid sector headwinds.
Buy strength in pure-play AI infrastructure names:** Broadcom and Cisco are executing on real AI demand; accumulate any weakness given their pricing power and margin expansion. **Avoid chasing semiconductor momentum indiscriminately:** QCOM's pullback after yesterday's gains suggests volatility; wait for clearer trend confirmation before adding. **Take profits in recent beneficiaries like JKHY and consider underweights on real estate** (CBRE) until sector sentiment stabilizes.