Micron and Qualcomm Spark Semiconductor Rally as AI Demand Broadens

Semiconductor stocks rallied strongly after Micron Technology and Qualcomm delivered blockbuster earnings and optimistic guidance, offsetting broader market concerns about inflated AI capital spending and rising interest rates. Micron’s revenue surged 346% year over year to $41.46 billion as AI data centers triggered unprecedented demand for memory chips, while Qualcomm doubled its non-handset revenue forecast to $40 billion and projected $15 billion in future data center sales. This surge reversed a week of sharp declines across the tech sector, lifting shares of related companies like SanDisk, Western Digital, and SK Hynix, and reassuring investors that the AI investment cycle remains robust despite high valuations. The rally underscores a critical shift where AI demand is broadening beyond graphics processors to include memory and data center infrastructure, affecting global chipmakers and tech investors alike.