• Amazon joined Microsoft and Meta in reinforcing investor confidence that AI spending is driving real revenue growth.

• Chip stocks rallied broadly, offsetting weakness in Apple after its cautious outlook.

• Tesla edged higher after Elon Musk dismissed a Wall Street Journal report suggesting the company was exploring strategic options for its China business ahead of a potential SpaceX-related transaction.

U.S. stock futures were higher in early Friday trade as positive Big Tech earnings reignited investor appetite for artificial intelligence (AI) trades.

Earlier this week, Microsoft's Azure-driven results and Meta's advertising strength reassured investors that AI investments are translating into revenue growth. Amazon added another major endorsement on Thursday; however, Apple Inc. took a knock after issuing a softer-than-expected outlook.

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As of 4:00 a.m. ET, Nasdaq futures rose 1.2%, S&P 500, Dow, and Russell 2000 futures were up 0.5%.

On Stocktwits, retail sentiment for the SPDR S&P 500 ETF (SPY), an exchange-traded fund that tracks the S&P 500 Index, remained 'bearish', and Invesco QQQ Trust (QQQ), which tracks the Nasdaq-100 Index, has moderated to 'neutral' from 'bearish'.

Trending Stocks To Watch

Amazon (AMZN): Shares soared over 11% in early premarket trade on strong earnings. Investors cheered AWS' strongest growth in 18 quarters, robust advertising revenue, and management's confidence that AI infrastructure demand remains supply constrained through at least 2027.

Apple (AAPL): Shares fell over 7% in early premarket trade after softer forward guidance, as investors focused on weaker Services revenue and supply constraints. Retail sentiment on Stocktwits shifted to bearish, although several traders believed the selloff may be overdone.

SanDisk (SNDK), Micron (MU), AMD (AMD), Nvidia (NVDA) and ASML (ASML): Chip stocks continued the rally for the second session after Amazon's AI commentary strengthened confidence in hyperscaler spending and a dramatic rebound in the South Korean market. Meanwhile, Michael Burry has increased bearish bets against Nvidia, Micron and the semiconductor ETF SOXX.

Super Micro Computer (SMCI): Shares rose over 2% in early premarket trading after launching 10 new AI data center rack models designed for NVIDIA's GB300 and Vera Rubin platforms.

Reddit (RDDT) shares cracked nearly 10% in early premarket trade after management disclosed slowing logged-in user growth and increasingly volatile Google search referrals. CEO Steve Huffman acknowledged search traffic had become "choppy." On Stocktwits, however, retail sentiment turned extremely bullish.