Netflix, Oracle and other technology stocks are lifting U.S. indexes Wednesday as their profits pile higher and excitement builds around the moneymaking prospects of artificial intelligence. The S&P 500 was up 0.

Analysts at Morgan Stanley say Microsoft (NASDAQ: MSFT) is in a "pole position" to capitalize on growing demand for generative artificial intelligence (AI)-powered applications like AI agents. Other analysts seem to agree.

But one Wall Street analyst thinks investors should take advantage of that lull. Oppenheimer 's Rick Schafer just made the company one of his top picks for 2025 in the semiconductor sector. His firm's price target of $175 per share would represent a 27% gain from recent levels.

U.S. stock indexes rose on Wednesday due to stronger-than-expected earnings from major tech companies and growing optimism for AI.

U.S. stock indexes are drifting higher following a mostly encouraging batch of profit reports from big companies.

BMO Capital Markets forecasts the S&P 500 will reach 6,700, reflecting a gain of 13.2%. Chief investment strategist Brian Belski said he and his team "remain resolutely bullish," but expect "performance and fundamentals will more closely match the historical norms -- namely, in the high-single digit/low-double-digit percentage range in 2025."

US equity futures signaled that the strong Wall Street rally of the past two sessions remains on track, lifted by a slew of robust corporate results and signs that US tariffs on trade partners could be less harsh than feared.