INTC, AMD, MU, NVDA: Chip Stocks Rally As Investors Look Past AI Concerns

• Intel’s CEO highlighted severe CPU supply constraints and warned that the memory shortage could worsen next year.
• Reports of exploratory talks between Intel and SK Hynix added to optimism around U.S. chip manufacturing and memory supply.
• A broader technology rebound, helped by lower Treasury yields, supported gains across semiconductor and AI stocks.

Chip stocks rallied sharply Thursday as investors looked past this week’s AI pacing concerns and focused again on tight semiconductor supply and resilient data-center demand, with fresh Intel comments and a potential SK Hynix partnership boosting bullish sentiment.

The iShares Semiconductor ETF (SOXX) rose about 3.4%, with Intel rising 7.7%, AMD up 6.5%, and Arm gaining 8.6%. Nvidia stock rose 2.5% and Marvell rose 4.8%, while memory chip majors Micron and SanDisk climbed 5.5% and 6.2%, respectively.

Intel’s rally also came as investors digested reports that SK Hynix is in exploratory talks with Intel to manufacture memory chips in the U.S. for the first time. Reuters reported the talks on Wednesday, sending Intel’s shares up 4% at the time and extending their run the next day. SK Hynix confirmed exploratory discussions but emphasized no agreement was finalized

One proposal under discussion, according to the Reuters report, involves SK Hynix leasing part of Intel’s planned Ohio manufacturing complex. A partnership could give Intel a potential customer for its foundry business.

Intel Highlights Tight Chip Supply

Intel provided one of the biggest catalysts for the sector after CEO Lip-Bu Tan said the company can currently meet only about half of customer CPU demand, highlighting the extent of supply constraints across the semiconductor industry.

Speaking at the AI Infrastructure Summit in Santa Clara on Tuesday, Tan also warned that the global memory shortage could worsen next year.

The comments boosted memory stocks, with investors betting that constrained supply could support pricing and margins for companies including Micron.

AI Spending Fears Ease

Thursday’s rebound came after chip stocks were hit earlier this week by concerns that AI infrastructure spending could eventually slow. Comments from AI executives had fueled questions around the pace and sustainability of massive investments in data centers.

Investors appeared to refocus on the current demand environment instead, with AI data-center expansion continuing to drive demand for advanced processors, memory and networking components.

A broader technology rebound also helped. The Nasdaq gained about 1.7% Thursday, while the S&P 500 rose 1.1%, as lower Treasury yields eased pressure on growth stocks.

Retail View On Chip Stocks 

On Stocktwits, the retail sentiment was ‘extremely bullish’ for SOXX, ‘bullish’ for INTC, ‘bearish’ for NVDA, MU and SNDK.

“$MU I don’t think she’s anywhere close to being done,” said a trader. On Intel’s stream, a user commented: “$INTC everyone needs to add this to their portfolios right now.”

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