Nvidia, Palantir Fuel Historic Tech Rally — And It's Far From Done

In a quarter that began with fears of a tech wreck following President Donald Trump‘s sweeping tariff announcements, Wall Street’s tech darlings pushed sector benchmarks to one of their strongest quarterly gains on record, reigniting optimism for a continued summer rally.

The Technology Select Sector SPDR Fund (NYSE:XLK), which tracks the broader tech sector, soared 22% during the second quarter of 2025.

That marked its best quarterly performance since the second quarter of 2020, when central banks pumped liquidity into the system to combat the COVID-19 crisis, and its second-best quarter since the aftermath of the dot-com collapse in 2002.

From the April lows—hit just after Trump’s tariff policies were unveiled—the XLK has rocketed 45%, registering its strongest 13-week rally since June 2020 and second-best since the ETF was launched in 1998.

Chart: Tech Stocks Log Historic Quarter

5 Stocks Drove Over Half Of XLK’s Historic Rally

Five stocks were responsible for about two thirds of the tech sector’s total return during the quarter.

Nvidia Corp. (NASDAQ:NVDA) was the single most important contributor. Shares of the AI ...