Global semiconductor stocks climbed sharply on Thursday after Micron Technology delivered stronger-than-expected financial results and an upbeat outlook, reinforcing investor confidence that demand for artificial intelligence infrastructure remains robust despite recent concerns over technology valuations.
Micron, a leading supplier of memory chips used in Nvidia’s AI processors, surged more than 17 percent to a record high after projecting quarterly revenue and profit well above Wall Street expectations. The company also disclosed that customers had committed $22 billion in long-term agreements to secure future memory chip supplies, highlighting growing competition for components needed to power AI data centres.
The rally added about $189 billion to Micron’s market value, lifting its market capitalization to approximately $1.39 trillion. At one point during trading, the company briefly surpassed the market values of both Meta Platforms and Tesla.
The positive earnings report lifted other memory and storage companies as well. Western Digital gained 5.6 percent, SanDisk jumped more than 15 percent, and Seagate Technology advanced 6.7 percent. The Philadelphia Semiconductor Index also moved higher, reflecting renewed confidence across the sector.
Ben Barringer, head of technology research at Quilter Cheviot, said Micron’s results provided reassurance about the AI supply chain, where investors had become increasingly concerned about memory availability. He said stronger visibility into future demand and continued supply constraints should help stabilize confidence across the technology sector.
Not all chip stocks joined the rally. Shares of Arm Holdings and Marvell Technology slipped more than 2 percent during volatile trading, while Nvidia declined 2.3 percent despite Micron’s positive outlook.
Qualcomm was among the gainers, rising 3.8 percent after announcing plans to generate $15 billion in annual revenue from its data centre business by 2029 as it expands beyond its traditional smartphone chip operations.
The strong performance followed a weaker start to the week, when global technology shares retreated as investors questioned whether massive investments in AI infrastructure would produce profits quickly enough to justify soaring valuations.
Micron executives said demand for high-bandwidth memory chips continues to exceed supply, allowing manufacturers such as Micron, SK Hynix and Samsung Electronics to maintain premium pricing. Chief Executive Sanjay Mehrotra said the company expects supply constraints to continue beyond 2027 because of sustained AI-driven demand.
Analysts at D.A. Davidson described Micron as entering a new phase marked by stronger earnings visibility and raised their price target to $2,000 per share, one of the highest on Wall Street.
The optimism extended beyond the United States. European chip equipment maker ASML rebounded 2.6 percent after two sessions of losses, while Infineon, STMicroelectronics and ASM International also posted gains. In Asia, South Korea’s SK Hynix climbed 13 percent and Samsung Electronics rose 5.3 percent, reflecting broad confidence that the AI-driven memory boom still has room to run.
