NEW YORK — The Nasdaq Composite rose 329.42 points, or 1.27%, to close at 26,259.09 on Tuesday, driven by renewed investor enthusiasm for artificial intelligence-related shares and a broader market rebound amid easing geopolitical concerns and optimism over technology infrastructure spending.

The tech-heavy index snapped back from recent volatility as semiconductor and data center stocks extended gains for a second straight session. Chipmakers and related names benefited from continued focus on AI buildout, with investors rotating back into growth-oriented technology plays after a period of profit-taking and sector rotation.

The advance came as U.S. stock futures had pointed higher overnight, with the AI trade taking center stage once again. Contracts tied to the Nasdaq 100 rose notably in pre-market trading, setting the tone for a positive session across major averages. The S&P 500 and Dow Jones Industrial Average also posted gains, though the Nasdaq outperformed on the strength of its heavy technology weighting.

Analysts attributed the move to sustained demand expectations for AI infrastructure. Companies involved in chips, memory, storage and data centers led the charge, reflecting ongoing capital expenditure commitments from major cloud providers and hyperscalers. Recent developments, including new filings and investments in the AI ecosystem, reinforced confidence in long-term growth prospects for the sector.

Geopolitical factors provided additional support. Reduced immediate fears of escalation in the Middle........

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