US chip-related stocks advance on upbeat AI demand outlook
SMH•US chip-related stocks rose premarket after strong results from SpaceX and Super Micro. Nvidia gained 1.9%, AMD rose 2%, and several other chip and storage stocks advanced; the Philadelphia Semiconductor Index was up nearly 60% year to date as of the last close.
1. Chip stocks rise
US chip-related stocks rose premarket after Super Micro forecast first-quarter revenue and margins above estimates and SpaceX reported a jump in third-quarter revenue, signaling stronger AI demand. Nvidia rose 1.9%, AMD gained 2%, and Marvell, Applied Materials and Intel advanced between 2.1% and 2.5%; Credo Technology gained 7.1%. Micron rose 3%, while Western Digital, Sandisk and Seagate Technology gained between 3.5% and 3.9%.
2. AI demand outlook
Needham said the momentum is expected to be driven by the ramp of next-generation AI systems. The gains followed last week’s sharp selloff, driven by rising Treasury yields and concerns about Fed rate hikes that threatened to increase borrowing costs and curb AI infrastructure spending. The Philadelphia Semiconductor Index was up nearly 60% year to date as of the last close.
