On June 24, shares of semiconductor companies experienced a significant surge, boosting market values by over $400 billion. This rally was sparked by optimistic forecasts from Micron Technology and Qualcomm, which rekindled interest in the AI stock sector that had recently been losing momentum on Wall Street.
Applied Materials and ASML, key players in providing specialized manufacturing equipment to semiconductor firms, each saw their stocks rise by more than 4%.
The positive outlook from Micron and Qualcomm comes after investors expressed concerns about the high valuations of AI-related businesses, following a prolonged period of growth. The PHLX chip index had dropped by 8% on Tuesday, as fears mounted that the extensive investments needed for building AI data centers might take longer than expected to translate into higher revenues and profits.
Despite this week's declines, the PHLX chip index is still up a remarkable 90% year to date in 2026. Notably, excluding Wednesday's late rally, Micron has posted an impressive gain of over 260% since the beginning of the year.
This report has been prepared by Noel Randewich, with editing by Chris Reese, in accordance with the Thomson Reuters Trust Principles.
