- Semiconductor stocks rallied on Wall Street led by AMD after expanding partnership with Microsoft
- AMD stock rose over 5% pre-market, trading up 3.31% at $512.17 by mid-morning EDT
- Intel, Micron, and Nvidia shares also gained amid renewed interest in AI-related chips
Semiconductor stocks staged a broad-based rally on Wall Street on Monday, led by Advanced Micro Devices Inc. (AMD) after the company unveiled an expanded strategic partnership with Microsoft Corp. to strengthen artificial intelligence infrastructure for Azure.
AMD climbed as much as 5.36% in pre-market trading to $522.42 after the announcement before trimming some gains. At 10:01 a.m. EDT, the stock was trading at $512.17, up 3.31%, according to real-time market data.
The upbeat sentiment spread across the chip sector. Intel Corp. rose 3.68% to $98.54, Micron Technology Inc. gained 4.37% to $886.06, while Nvidia Corp. advanced 1.74% to $206.33 in early trading, reflecting renewed investor appetite for AI-linked semiconductor stocks.
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AMD said the expanded collaboration with Microsoft covers its GPUs, CPUs, networking technologies and software stack, with the companies working together to power frontier AI model inference on Microsoft Azure.
At the centre of the partnership is Microsoft's deployment of the AMD Helios Rackscale Solution, which will be used to support frontier AI models, Azure AI services and enterprise customers.
The company said the Helios platform will begin shipping to customers, including Microsoft, in the second half of 2026.
The integrated rack-scale platform combines AMD Instinct MI455X GPUs, sixth-generation AMD EPYC "Venice" CPUs, AMD Pensando networking technology and the ROCm software stack, and is designed for large-scale AI training and inference workloads.
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Microsoft will initially deploy the platform for AI inference across frontier models, Azure AI services and customer applications.
"Customers increasingly require AI infrastructure optimised for diverse workloads, including training, inference, data preparation, search and reinforcement learning," Microsoft Chairman and Chief Executive Officer Satya Nadella said in a statement.
The announcement reinforced expectations that hyperscale cloud providers will continue investing aggressively in AI infrastructure, helping lift sentiment across the broader semiconductor sector after recent volatility.
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