- Memory and storage chip stocks surged sharply, with the PHLX Semiconductor Index up 3.8% by 9:51 a.m. ET
- SanDisk shares jumped 11%, Micron and Seagate rose nearly 8%, Western Digital gained 5.3%
- CoreWeave reported $3.6 billion revenue, up 168%, and raised 2026 forecast to $13-$13.3 billion
Last week, Wall Street was writing the AI trade's obituary. On Wednesday morning, buyers came back in force, with chip stocks rallying sharply at the open. Memory and storage names led the way, along with CoreWeave, the AI cloud provider whose results gave the whole sector a jolt. The PHLX Semiconductor Index was up 3.8% at 9:51 a.m. ET, after climbing as much as 5% in the first minutes of trading.
SanDisk was the standout, as its shares jumped 11% to about $955, briefly touching $958.58. The rally spread well beyond SanDisk, with Micron rising about 8% to $782.48, and Seagate gaining nearly 8%. Both had climbed as much as 8% to 9% in the opening minutes. Western Digital was up 5.3%. Marvell, Broadcom and Intel each added close to 6%.
Chip equipment makers joined in more modestly, with Lam Research was up about 4%, Applied Materials 3.3%, and Taiwan Semiconductor 3%.
The CoreWeave Spark
The rally began late Tuesday, as CoreWeave reported third-quarter revenue of $3.6 billion, up 168% from a year earlier, and lifted its 2026 revenue forecast to between $13 billion and $13.3 billion. Its backlog of contracted future revenue now stands at roughly $133 billion.
CEO Michael Intrator called it a “breakout quarter.” Investors agreed, as the company's shares rose nearly 15% to about $56, after hitting an intraday high of $57.40. The stock had lost about 40% since early October as fears of an AI bubble grew. Rival neocloud Nebius was up more than 13%.
Nvidia Lags Behind
The industry's biggest name had a quieter morning. Nvidia rose about 2% to $172.53, with an early high of $175.13. That's modest after a two-day slide that wiped out roughly $430 billion in market value.
Nvidia is still dealing with an internal investigation tied to CEO Jensen Huang, and the pressure keeps coming. Baird downgraded the stock on Wednesday, and Morgan Stanley dropped it from its list of top picks. Not everyone is convinced the worst is over.
“It's not good for Nvidia. It's not good for Jensen Huang,” Zacks chief equity strategist John Blank told CNBC. The company will report its quarterly earnings on November 17.
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