Chip Stocks Rally After Strong Earnings From Microsoft and Lam Research
Semiconductor stocks surged following strong earnings reports from Microsoft and Lam Research, with Lam's shares rising over 20%—their best day since 1999. The rally was fueled by AI-driven demand for data center infrastructure and a warning from Samsung about an ongoing memory shortage that could persist until 2028. Memory stocks like Micron (up 13%) and SanDisk (up 21%) also saw significant gains, reversing recent losses tied to weak results from SK Hynix. The broader chip sector has benefited heavily from the AI boom but had recently faced a selloff amid concerns about slowing demand. Arm Holdings reported strong interest in its new AGI CPU with over $2 billion in expected revenue through 2027 and 2028, while major ETFs like iShares Semiconductor rose nearly 8%. AMD, Applied Materials, Intel, Marvell Technology, and Nvidia also posted gains ranging from 10% to 13%.
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Topics: AI infrastructure earnings report market rally semiconductors