Micron's stellar forecast ignites global chip stock rally

Micron Technology shares surged over 17% to an all-time high on Thursday after the chipmaker forecast quarterly revenue and profit well above expectations, reigniting the AI-driven rally in semiconductor stocks. The company also revealed that customers committed $22 billion to secure memory chip supply, highlighting AI demand tightening the market Source: larepublicaco.

The rally extended across the sector: Western Digital gained 5.6%, SanDisk jumped over 15%, and Seagate Technology rose 6.7%. The Philadelphia Semiconductor Index advanced 1.9% Source: mileniomx. However, the momentum was uneven — Nvidia slipped 2.3%, while Arm Holdings and Marvell fell over 2% each in volatile trading Source: larepublicaco.

Micron, the only U.S. manufacturer of high-bandwidth memory (HBM) chips and a key Nvidia supplier, said demand continues to outpace supply, allowing it and rivals SK Hynix and Samsung Electronics to command premium pricing Source: mileniomx. Analysts at D.A. Davidson called it "a new era" with unprecedented visibility, raising their price target to $2,000 — nearly double the last close Source: larepublicaco.

In contrast, some tech stocks declined earlier in the week as investors reassessed lofty valuations and questioned how quickly data center spending would translate into profits Source: mileniomx. Qualcomm bucked the trend, rising 3.8% after forecasting $15 billion in data center revenue by 2029 Source: larepublicaco.