• US-listed chip stocks climb in premarket trading, with SanDisk, Western Digital, Micron, Intel, AMD, Broadcom, and Nvidia all posting gains.
  • The Philadelphia Semiconductor Index (SOXX) rises 2.8%, reflecting broad buying interest.
  • Investor sentiment is buoyed by sustained AI infrastructure demand and improving memory pricing dynamics.

Premarket Rally Across the Sector

Shares of major semiconductor companies surged in premarket trading on Thursday, with the broader SOXX index gaining 2.8%. The rally was led by storage-focused names SanDisk (SNDK) and Western Digital (WDC), which rose 4.1% and 4.0%, respectively. Memory maker Micron (MU) climbed 3.3%, while Intel (INTC) and AMD advanced 2.8% and 2.7%. Broadcom (AVGO) added 2.1%, and AI bellwether Nvidia (NVDA) gained 1.2%.

The breadth of the move suggests investors are betting on a sustained uptick in demand for chips used in data centers and AI applications, rather than a single stock-specific catalyst. According to people familiar with the matter, recent commentary from hyperscale cloud providers points to robust capital expenditure plans for AI infrastructure through the remainder of the year.

Memory and AI Names Lead

Memory-chip makers have been particularly buoyed by signs that pricing for DRAM and NAND flash is stabilizing after a prolonged downturn. SanDisk and Western Digital, both heavily exposed to NAND, are seen as beneficiaries of supply discipline among manufacturers. Meanwhile, AMD and Nvidia continue to ride the AI wave, with analysts expecting strong quarterly results from Nvidia later this month.

“The market is pricing in another beat from Nvidia next week, but the real story is the broadening out of AI demand beyond just GPUs,” said one portfolio manager who declined to be named. “Memory and networking chips are also seeing tailwinds.”

Attempts to reach Intel and Micron for comment were not immediately successful.

Market Context

The rally comes amid a generally positive backdrop for risk assets, with the S&P 500 trading near record highs. However, chip stocks remain sensitive to any shifts in U.S. export control policy or trade tensions. Investors are also keeping an eye on inflation data due later this month, which could influence the Federal Reserve’s rate path.

Correction: An earlier version of this article incorrectly stated the percentage gain for Nvidia. It has been updated to 1.2%.