Semiconductor stocks rebounded sharply on Thursday, driven by strong earnings from Microsoft and Lam Research, and a warning from Samsung about persistent memory supply constraints.
The rally reversed recent losses sparked by concerns over corporate AI spending, after a market decline earlier in the week erased over $1 trillion in value.
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Earnings Boost
Lam Research shares climbed 18 percent, marking their best single-day performance since 1999, after issuing optimistic forecasts fueled by AI demand.
Microsoft surged 15 percent, its largest daily gain since 2008, following expansion in its Azure division and increased capital expenditures.
Memory chipmakers also saw substantial gains.
Micron rose 18 percent, while Sandisk surged 26 percent, rebounding from earlier losses tied to weak quarterly results from SK Hynix.
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Samsung warned that supply constraints could persist through 2028, adding to the positive sentiment for memory stocks.
Arm Holdings advanced 7 percent as demand for its first in-house silicon chip, the AGI CPU, exceeded $2 billion for fiscal years 2027 and 2028, according to CNBC.
Arm CEO Rene Haas highlighted the growing market for CPUs in agentic workloads and inference, stating, "The demand for the product is great, and more importantly, I think it underpins the fact that the market for CPUs, for agentic workloads and around inference is just key, and we're just seeing that grow."
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The semiconductor sector remains a primary beneficiary of AI investment as tech companies continue expanding memory and processing capacity for data centers.
