U.S. Stock Index Futures Rise on Positive Broadcom Forecast

U.S. stock index futures rose on Friday, led by the tech-heavy Nasdaq 100, following an optimistic forecast from chipmaker Broadcom (NASDAQ:AVGO) which fueled excitement around artificial intelligence (AI).

Broadcom projected quarterly revenue above Wall Street estimates and forecast booming demand for its custom AI chips, resulting in a 15% increase in its stock during premarket trading. Investment analyst Dan Coatsworth noted that clients are enthusiastic about AI's potential to enhance earnings, positioning Broadcom as a viable alternative to Nvidia (NASDAQ:NVDA) in the AI sector.

The positive sentiment extended to other semiconductor stocks with Marvell (NASDAQ:MRVL) rising by 5.6%, Micron Technology (NASDAQ:MU) gaining 2%, and Nvidia increasing by 1.1%.

This optimism follows a strong rally in technology stocks that pushed the Nasdaq above 20,000 for the first time on Wednesday. A stable inflation report indicated a likely 25-basis-point rate cut from the Federal Reserve next week, further boosting market momentum, with trader bets for the Dec. 17-18 meeting exceeding 96%.

As of 5:25 a.m. ET, the Dow E-minis were up 97 points (0.22%), S&P 500 E-minis were up 19 points (0.31%), and Nasdaq 100 E-minis up 138.75 points (0.64%). After slight declines on Thursday, the main indexes are on track for notable weekly performance, particularly in the Nasdaq, which continues favoring tech stocks amid AI enthusiasm.

U.S. equities closed November positively following Donald Trump's election win and expectations of business-friendly policies boosting corporate profits, maintaining a positive trend into December.

Among notable moves, Salesforce (NYSE:CRM) gained 1.8% after KeyBanc upgraded its stock from 'sector weight' to 'overweight.'