Boosting Nasdaq-100 Futures: Microsoft and Intel Take Center Stage

Microsoft's $60B Buyback and AI Investments Boost Sentiment

Microsoft Corp. (MSFT) saw a modest uptick following its Monday announcement of a $60 billion share buyback program and a 10% hike in its quarterly dividend. The dividend, now at 83 cents per share, will be paid on December 12 to shareholders of record on November 21. This announcement comes as Microsoft faces increasing pressure from investors to show that its heavy spending on artificial intelligence (AI) is delivering returns.

Microsoft has committed significant capital to AI infrastructure, reporting a sharp increase in capital spending in its most recent quarterly results. The company’s investments in AI, including its Azure cloud business and Copilot AI tools, are being closely watched by analysts. Jefferies analysts noted that Microsoft is emerging as a “top AI beneficiary” due to the positive reception of Copilot across its software ecosystem. With AI developments leading the charge, Microsoft’s stock has gained approximately 15% so far this year, reflecting growing investor confidence in the company’s strategy.

Intel Jumps on Foundry Business Plans

Intel Corporation (INTC) shares surged 8% in extended trading on Monday after the company revealed plans to restructure its foundry business as a separate entity. This move is seen as part of CEO Pat Gelsinger’s broader effort to turn around the struggling chipmaker, which has been losing market share to competitors like Nvidia. The foundry business, which manufactures chips for external clients, has been a financial burden on Intel, costing around $25 billion over the last two years.

The separation of Intel’s foundry unit could allow the company to raise outside capital and potentially spin it off into a publicly traded entity. This strategic pivot comes as Intel also strengthens its ties with the U.S. government, securing up to $3 billion in funding under the CHIPS Act. The company is expected to play a key role in bolstering domestic semiconductor manufacturing, especially in light of geopolitical risks surrounding Taiwan, a major hub for chip production.

Market Implications for E-mini Nasdaq-100 Futures

The gains in Microsoft and Intel have provided a boost to the E-mini Nasdaq-100 Index futures, as these two companies hold significant weight in the index. Microsoft’s aggressive AI investments and shareholder-friendly buyback program signal long-term growth potential, which could continue to support the broader technology sector. Meanwhile, Intel’s restructuring efforts and government backing indicate a potential turnaround for the chipmaker, which has struggled to keep pace with rivals in the AI chip market.

Looking ahead, traders will be closely monitoring the Federal Reserve’s policy decisions, as changes in interest rates could influence the tech sector’s performance. However, the solid positioning of companies like Microsoft and Intel may provide a buffer for the E-mini Nasdaq-100 Index, particularly if AI-driven growth remains a central theme in the coming quarters.