U.S. stocks traded mixed on July 30, with the Nasdaq surging more than 2% and the Philadelphia Semiconductor Index jumping over 6% as tech giants' earnings dominated market sentiment. Microsoft skyrocketed over 14% on a stellar quarter, while Meta tumbled nearly 10% on deepening AI spending concerns, carving a sharp divide across AI-linked names.

Microsoft's accelerating Azure cloud growth and progress in Copilot commercialization fueled broad-based optimism, lifting cloud computing and AI application plays. The semiconductor sector erupted across the board, with Intel, AMD, and Micron each surging more than 12%. On the flip side, Meta was battered after reporting a 91% plunge in free cash flow.

AI Earnings Split: Microsoft Surges 14%, Meta Drops Nearly 10%

Microsoft (MSFT) soared over 14% to $446.44 on volume exceeding 42 million shares. The company posted fiscal Q4 revenue of $90.01 billion, up 18% year-over-year, with Azure growth accelerating to 43% and Copilot paid subscribers surpassing 30 million. Its stable capex guidance stood in stark contrast to spending spikes at Alphabet and Meta. Analysts said the report meaningfully shifted market sentiment, putting Microsoft on track for its best single-day gain in 18 years.

Meta (META) fell nearly 10% to $529.28. While revenue topped estimates, earnings missed targets and the company raised capex guidance, with free cash flow collapsing 91%, stoking fears over the return prospects on its heavy AI investments.

Semiconductor Sector Erupts: Intel and AMD Surge Over 12%

Intel (INTC) jumped over 12% to $92.37 on volume exceeding 42 million shares, leading all blue chips. AMD rallied nearly 14% to $488.75, Micron (MU) surged over 13% to $838.49, and Nvidia (NVDA) added nearly 3% to $195.65. The Philadelphia Semiconductor Index jumped more than 6%.

On the news front, SK Hynix (SKHY) surged nearly 14% to $144.40, as sustained AI chip demand continued to drive memory chip prices higher. Optical networking names also rallied, with Nokia (NOK) up over 9%, LITE up nearly 12%, and AXTI surging close to 20%.

Other Movers: Tesla Up Nearly 3%, Apple Edges Lower

Tesla (TSLA) rose nearly 3% to $306.26 after announcing its 10 millionth electric vehicle rolled off the production line globally, with first-half deliveries hitting a record of over 830,000 units. Amazon (AMZN) gained over 4% to $236.88, though an internal report revealed significant cost overruns on AI projects, keeping attention squarely on its upcoming earnings release. Apple (AAPL) dipped nearly 2% to $332.05, facing congressional pressure ahead of its earnings to cease sourcing memory chips from China.