US semiconductor stocks extended their rally on Thursday, helping lift the Nasdaq as renewed optimism around artificial intelligence and strong technology earnings continued to support investor sentiment.
SanDisk shares gained 4.42% to $1,404.00, while Advanced Micro Devices (AMD) rose 2.43% to $494.98. Micron Technology shares advanced 3.67% to $945.19, while SK Hynix jumped 5.43% to $163.04.
The gains across chip stocks came as investors continued to favour technology companies amid expectations that the AI investment cycle will remain strong.
The broader market also traded higher, with the S&P 500 rising 0.5% and the Nasdaq Composite advancing 0.6%. The Dow Jones Industrial Average added 132 points, or 0.3%.
The technology-heavy Nasdaq has staged a sharp recovery after falling more than 10% just two weeks ago. Strong earnings from AI hyperscalers and technology companies have helped revive investor enthusiasm for AI-linked stocks.
The Dow and S&P 500 were also hovering near record highs, indicating that the broader market recovery has extended beyond the technology sector.
On Wednesday, back-to-back gains in equities pushed the S&P 500 closer to fresh all-time highs, while the Nasdaq 100 jumped 1%.
The latest rally highlights the continued strength of the AI trade, with semiconductor companies among the biggest beneficiaries of rising demand for computing infrastructure.
Strong results from AI hyperscalers and technology companies have reinforced expectations that spending on data centres, advanced processors and memory chips will remain elevated.
The recent rebound in semiconductor stocks has also helped restore confidence in a segment that had faced significant selling pressure earlier.
SanDisk, AMD, Micron and SK Hynix have all benefited from renewed interest in the technology and AI ecosystem, with investors focusing on the potential for sustained demand for chips and related infrastructure.
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