Memory manufacturers have recovered sharply from their previous sessions' crash, with Sandisk Corp., Micron Technology Inc., Advanced Micro Devices Inc. rallying up to 23% on Thursday.
The bounce back comes after Korean giant Samsung Electronics flagged that the on-going memory (RAM, DRAM and NAND) may persist till 2028 on robust demand from hyperscalers.
In its second quarter earnings report, Samsung said that DRAM and NAND sales remained at record highs in the second quarter, with profit that exceeded early estimates riding on the AI boom.
ALSO READ: Nasdaq Soars 1.6% As Microsoft Shares Spike 15%; S&P 500, Dow Rebound
"In H2 2026, the Memory Business expects robust demand centered on servers stemming from continued AI infrastructure capex and broader adoption of agentic AI. Meanwhile, growth in demand for server DRAM, eSSDs, and HBM is expected to accelerate. This is projected to keep the market undersupplied, despite partial demand moderation in mobile and PCs," the market leader said.
Sandisk, arguably the worst-hit of all its peers on Wednesday, shot up by 23% to $1,268.40 on the memory boon. The stock traded 22.05% higher at $1,240.54 as of 11:08 a.m.
Micron staged a sharp recovery and zoomed nearly 17% to $868, while AMD jumped 14% to $498.20; American Depository Receipts (ADRs) of Korean giant SK Hynix traded 14% higher at $149.30, and Intel was up over 13% to $94.10. Other chip manufactuers like Microchip Technology Inc. and Nvidia Corp. also rose 5.5% and 4% higher to $75.86 and $197.25.
Traders seem to be rotating back into AI-linked chip stocks and semiconductors, after days of harsh dumping made valuations more breathable.
Microsoft's main cloud business Azure passed the AI valuation test as it grew 43% which was also ahead of market expectations. The windows-maker said it accrued a gain of $3.2 billion gain from its investment in artificial intelligence lab Anthropic
Wall Street Cheers Microsoft Earnings
The Wall Street staged a strong recovery on Thursday after the previous session's Fed-induced crash as indices received a fresh tech boost from Microsoft's strong earnings and AI-linked growth.
S&P 500 opened 1% higher at 7,385.30, tech-heavy Nasdaq Composite index surged 1.54% to 24,819.37, and Dow Jones Industrial Average rose 0.64% to 51,918.60 at open.
Microsoft Corp. soared over 14% few minutes after the opening bell to a high of $445.73. The company posted $90.01 billion, exceeding the expected $87.62 billion.
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.