CHICAGO (CNN/Money) - Technology stocks posted strong gains Friday, lifted in part by bargain hunters who found encouragement from Dell Computer Corp.'s strong earnings report, but trading patterns suggest the foundation is still too weak to signal an imminent recovery.

Tech shares also got a bounce with the broader market after U.N. Chief Weapons Inspector Hans Blix's report to the United Nations about the progress of inspections in Iraq. The sector came off its highs a bit when it became evident the situation regarding a possible war with Iraq hadn't become any clearer. But, markets surged again late in the session, sending tech shares significantly higher across the board.

The Nasdaq Composite Index climbed 32.73, or 2.56 percent, to close at 1310.17, according to preliminary results. Among blue chips, Microsoft (MSFT: Research, Estimates) advanced $1.31 to $48.30, IBM (IBM: Research, Estimates) gained $1.59 to $77.45, and Hewlett-Packard (HPQ: Research, Estimates) added 84 cents to $17.79.

Stock strategists have noted tech shares in general have been oversold over the past five weeks, but geopolitical tensions have kept investors at bay. Michael O'Hare, head of block trading at Lehman Brothers, said today's activity was mostly driven by short sellers covering their positions after Dell's positive outlook. Some analysts had expressed worries the company may fall short of expectations due to customers cutting back on spending because of Iraq and other international conflicts.

"I don't see any institutional money funneling into the market," O'Hare said. "People are so uneasy about what's taking place in the world, that nobody wants to be either short or long. There's a lot of supply in the marketplace, and most of it is short positions from the hedge fund community. The institutional people just aren't playing."

Dell (DELL: Research, Estimates) jumped $2.54, nearly 11 percent, to $25.79. Along with its sunny forecast, the company matched Wall Street estimates for its fourth-quarter earnings and revenue. A.G. Edwards upgraded its rating on Dell to "buy" from "hold," while First Albany raised its rating to "buy" from "neutral."

Elsewhere, Nvidia (NVDA: Research, Estimates) shot up $2.17, or 22 percent, to $12.04. The graphics chip maker handily beat analysts' estimates for its fourth-quarter net income. Several brokerages upgraded their ratings on the company, including Morgan Stanley, which raised its rating to "overweight" from "equal weight".

Analog Devices (ADI: Research, Estimates) moved $3.02 higher, more than 12 percent, to $26.90, after the chip maker delivered a strong first-quarter earnings report and said its fiscal second-quarter revenue growth should beat analysts' estimates.

Software maker Intuit (INTU: Research, Estimates) gained $2.79 to $44.46. The company delivered a strong fiscal second-quarter earnings report, driven by healthy sales of its tax software. AOL Time Warner (AOL: Research, Estimates), parent company of CNN/Money, gained 36 cents to $10.51 after the company abandoned efforts to merge its CNN news operation with Walt Disney's ABC News.