Chip stocks are rallying sharply as investors signal renewed confidence that artificial intelligence infrastructure spending remains robust and shows no signs of slowing.
Micron Technology (NASDAQ: MU) climbed roughly 6% on Thursday, continuing a strong run driven by surging demand for AI-related memory products.
SanDisk (NASDAQ: SNDK) posted an even more dramatic gain, soaring approximately 15% as investors piled into storage and memory plays tied to AI buildouts.
Super Micro Computer (NASDAQ: SMCI) added around 6.5%, reinforcing the broad-based nature of the rally across AI infrastructure hardware companies.
Western Digital (NASDAQ: WDC), Marvell (NASDAQ: MRVL), Broadcom (NASDAQ: AVGO), Intel (NASDAQ: INTC), and AMD (NASDAQ: AMD) also traded higher on the day.
A key catalyst behind the moves was news that South Korean chipmaker SK Hynix is oversubscribed in its US IPO, signaling that institutional investors remain firmly bullish on the AI memory trade.
A persistent shortage of high-bandwidth memory used inside AI data centers has driven sharp gains across Micron, Samsung Electronics, and SK Hynix, with Wall Street expecting supply constraints to last through 2027.
Adding further momentum, Micron unveiled plans to invest up to $3 billion to strengthen the US semiconductor supply chain, including support for GlobalWafers’ silicon wafer manufacturing operations in Texas.
Micron and GlobalWafers plan to enter a 10-year supply agreement, giving Micron long-term access to the raw silicon wafer capacity needed to support its expanding production ambitions.
The investment underscores how memory chipmakers are racing to secure domestic manufacturing footholds as geopolitical pressures continue to reshape global semiconductor supply chains.
AI hyperscalers including Google, OpenAI, and Anthropic are reportedly overspending on AI infrastructure, aggressively expanding capacity as they compete to establish dominance across the AI landscape.
Analyst upgrades and Micron’s manufacturing commitment have combined to reinforce investor conviction that the AI spending supercycle still has considerable runway ahead.
