Why is the Block (ASX:SQ2) share price squaring away such healthy gains today?

Here's what might be boosting the embattled tech stock higher.

| More on:
A businessman stacks building blocks.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Key points

  • The Block share price is currently up 5.24% at $158.02
  • Its gains come as the tech sector crowns itself as the top-performing industry on the ASX 200 so far on Tuesday
  • It also follows news Block will be one of the first customers to receive blockchain technology being developed by Intel

Tuesday is proving to be a good day for the embattled Block Inc CDI (ASX: SQ2) share price.

It's regaining some of its notable losses from its journey on the ASX so far amid news the company – formerly known as Square – will be among the first to test a new blockchain accelerator chip.

At the time of writing, the Block share price is $158.02, 5.24% higher than its previous close.

Let's take a closer look at what might be boosting the fresh-faced ASX stock today.

Block share price surges 5% on Tuesday

The Block share price is moving upwards this week, following up yesterday's 1.8% gain with today's 5% surge.

It's a much-needed boost for the stock. It tumbled 16.5% between listing on 20 January – after absorbing former market favourite, Afterpay ­– and Friday's close.

The embattled tech sector is also moving higher today, with the S&P/ASX 200 Info Tech Index (ASX: XIJ) and the S&P/ASX All Technology Index (ASX: XTX) gaining 1.05% and 1.03% respectively.

That makes the tech sector the best-performing industry on the S&P/ASX 200 Index (ASX: XJO), which is slumping 0.5% on Tuesday.

It also places Block as the third best-performing ASX 200 share, behind Sims Ltd (ASX: SGM) and SEEK Limited (ASX: SEK).

Could this be boosting Block's stock?

While there's been no news from Block lately, the company's New York listing, Block Inc (NYSE: SQ), surged 3.49% in Monday's session amid news released by Intel Corporation (NASDAQ: INTC).

The computing technology company has announced it's working to create a low-energy blockchain accelerator, and Block will be among 3 companies with first dibs on the technology.  

The blockchain tech will be ready to ship later this year, said Intel. It chose the three initial customers due to their sustainability goals.

Senior vice president and general manager at Intel's accelerated computing systems and graphics group, Raja M. Koduri, commented:

Intel Labs has dedicated decades of research into reliable cryptography, hashing techniques and ultra-low voltage circuits. We expect that our circuit innovations will deliver a blockchain accelerator that has over 1000x better performance per watt than mainstream GPUs for SHA-256 based mining. 

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the 'five best ASX stocks' for investors to buy right now. We believe these stocks are trading at attractive prices and Scott thinks they could be great buys right now...

See The 5 Stocks *Returns as of 30 April 2025

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns and has recommended Block, Inc. The Motley Fool Australia has recommended SEEK Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Technology Shares

Two smiling work colleagues discuss an investment or business plan at their office.
Technology Shares

Why Goldman Sachs rates this ASX tech share as a top buy

Let's see why the broker rates this stock highly right now.

Read more »

A woman sits at her computer with her hand to her mouth and a contemplative smile on her face as she reads about the performance of Allkem shares on her computer
Technology Shares

WiseTech shares have surged 34% since April. Is it too late to buy?

Can WiseTech shares keep charging higher? Here’s what this investing expert expects.

Read more »

A man in full American NFL playing kit crouches over with his arms across his chest in a defensive stance against a dark background.
Technology Shares

ASX 300 tech stock charges 7% higher to record high on stellar results

This tech stock delivered another impressive result this morning.

Read more »

a man sits at his desk wearing a business shirt and tie and has a hearty laugh at something on his mobile phone.
Technology Shares

Up 87% in 12 months: Why this ASX tech share is still a top buy

This technology business still has loads of potential, according to a fund manager.

Read more »

a group of three cybersecurity experts stand with satisfied looks on their faces with one holding a laptop computer while he group stands in front of a large bank of computers and electronic equipment.
Technology Shares

2 ASX 200 tech stocks Morgans rates as buys

The leading broker has named a couple of shares to buy right now.

Read more »

Man smiling at a laptop because of a rising share price.
Technology Shares

Is it time to buy ASX data centre shares?

ASX data centre shares have been rebounding lately. Will they continue to?

Read more »

a group of people sit around a computer in an office environment.
Earnings Results

Guess which ASX 200 tech stock is rocketing 12% on record results

Another half, another record result from this high-quality company.

Read more »

Man on his laptop standing next to data centres.
AI Stocks

3 reasons to buy this $9 billion ASX 200 AI stock today

A leading expert forecasts this $9 billion ASX 200 AI stock will deliver “meaningful earnings upside”.

Read more »