On Thursday, semiconductor stocks surged, with Lam Research shares jumping 20%, marking their best performance since 1999, after the company reported robust earnings and optimistic guidance fueled by AI-driven demand. Microsoft also saw a 15% increase in its stock price, attributed to strong growth in its Azure cloud services and increased capital expenditures.
This rally extended to memory stocks, with Micron and Sandisk rising 13% and 21%, respectively, following Samsung's warning that the memory shortage could persist until 2028.
Despite recent selloffs due to disappointing results from SK Hynix, the overall sentiment in the chip sector remains positive, particularly as companies continue to invest heavily in memory and processing units to support AI infrastructure.
Arm Holdings also gained 6% on strong demand for its AGI CPU, with CEO Rene Haas noting that demand is projected to exceed $2 billion through fiscal 2027 and 2028. The iShares Semiconductor ETF rose 8%, while other major players like Applied Materials, AMD, Intel, Marvell Technology, and Nvidia also saw significant gains, reflecting a broader recovery in the semiconductor market