Dell and HPE surged over 10% on AI momentum, while Qualcomm, Apple, and the iShares Ethereum Trust also posted gains following a favorable inflation print, setting the stage for a critical Fed policy test.
Dell surged nearly 10% to an all-time high on AI server demand and strong earnings, though it trades at average analyst price target with insider selling.
HPE jumped over 10% on a 75% networking revenue growth and $7.6B AI backlog, with roughly 25% upside to average analyst target.
The iShares Ethereum Trust broke above $19 on huge volume but faded into the close, signaling a shaky breakout that needs confirmation through the Fed decision.
Qualcomm climbed 3% after AWS data center chip deal, but holds only a Hold consensus and has red zone financial health, making the move more tentative.
Apple added nearly 2% on new iPhone lineup expectations, but trades at 38x earnings and at average price target, limiting upside.
Tech stocks rallied on Friday following an in-line August CPI report showing 3.4% annual inflation. While Dell and HPE led with double-digit gains driven by AI infrastructure demand, investors remain cautious ahead of the Federal Reserve's interest rate decision on September 16.
The Fed's interest rate decision is viewed as a major market catalyst that could either confirm the strength seen after the CPI report or erase recent gains, acting as a test for the sustainability of current breakouts.
Both companies are benefiting from massive demand for AI servers and infrastructure, with HPE specifically reporting a $7.6 billion AI backlog and 75% growth in its networking segment.