AI chip rally adds $400bn in market value after upbeat forecasts
News Desk
25 June 2026, 11:17
Shares of semiconductor companies surged in after-hours trading on Wednesday, adding more than $400 billion in market value after strong forecasts from Micron Technology and Qualcomm renewed investor confidence in the artificial intelligence-driven chip boom.
Micron's shares jumped 12 percent in extended trading after the memory-chip maker projected quarterly earnings above analysts' estimates, signalling robust demand fuelled by continued investment in AI infrastructure.
Qualcomm also buoyed sentiment, saying it expects its data-centre business to generate $15 billion in revenue by 2029 as it expands beyond its core smartphone-chip business and deepens its focus on AI-related products.
The upbeat outlooks lifted the broader semiconductor sector. Shares of Western Digital, Sandisk and Seagate Technology, which compete with Micron, rose more than 8 percent. Arm Holdings gained about 6 percent, while Marvell Technology and Broadcom also advanced.
Companies supplying semiconductor manufacturing equipment benefited as well, with Applied Materials and ASML each rising more than 4 percent.
The gains come after growing concerns on Wall Street that valuations of AI-linked companies may have become overstretched following years of strong growth. The PHLX Semiconductor Index fell 8 percent on Tuesday as investors questioned whether the massive investments being poured into AI data centres would generate returns quickly enough.
Despite the recent pullback, the index remains up about 90 percent so far this year. Micron shares, excluding Wednesday's late-session rally, have gained more than 260 percent year to date.
