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 are drifting higher following a mostly encouraging batch of profit reports from big companies.

U.S. stocks rose after more companies said they made bigger profits at the end of last year than analysts expected and as Treasury yields eased.

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."

Asian shares traded mixed Tuesday, echoing Wall Street trading, where gains for oil-and-gas producers helped offset drops for Nvidia and other Big Tech companies. Japan's benchmark Nikkei 225 slipped 1.

Markets are pointing higher on the first day of trading under the second administration of U.S. President Donald Trump.