Lam Research stock rally lifts AMD, Micron and broader chip shares
Lam Research, Micron and AMD led a chip rebound as Microsoft cloud demand and Samsung’s memory warning pulled AI hardware stocks higher.
By Theo Nakamura · Staff Writer
· 3 min read
The Lam Research stock rally became the clearest sign of a chip-stock rebound Thursday, with semiconductor names jumping after earnings and AI demand signals eased some pressure from a recent selloff. For retail investors, the move shows how closely chip shares are now tied to spending on cloud computing, data centers and artificial intelligence infrastructure.
CNBC reported that Lam Research shares rose 18% and were on pace for their best trading day since 1999. The chip-equipment company posted better earnings and guidance, with demand linked to artificial intelligence helping drive the update.
Microsoft also helped set the tone for the sector. CNBC reported that Microsoft climbed 15% after pointing to growth in its Azure cloud business and raising capital expenditures, meaning spending on long-term assets such as data centers and computing equipment. The move put Microsoft on track for its best day since 2008, according to CNBC.
Why are chip stocks up today?
Chip stocks rose because investors saw fresh evidence that large technology companies are still spending on the hardware needed for AI workloads. AI data centers require chips, memory and related equipment, so stronger cloud demand can lift expectations across the semiconductor supply chain.
Memory stocks were another major part of the rally. CNBC reported that Micron gained 18% and Sandisk climbed 26% after Samsung warned that a shortage in memory could last into 2028. Those stocks had fallen in recent sessions after results from South Korea’s SK Hynix disappointed investors, according to CNBC.
The rebound followed a rough stretch for the group. CNBC reported that worries about whether AI-related spending was nearing a peak had contributed to recent losses, including more than $1 trillion in market value erased earlier in the week.
Which chip stocks moved the most?
The gains reached well beyond Lam Research and the memory names. CNBC reported that the iShares Semiconductor ETF, an exchange-traded fund that tracks a basket of chip stocks, rose 8%. Applied Materials gained 15%, Advanced Micro Devices rose 13%, Intel advanced 11%, Marvell Technology added 13% and Nvidia increased nearly 3%, according to CNBC.
Arm Holdings also participated in the rally, rising 7% on demand for its first in-house chip, called AGI CPU. CNBC reported that Arm is trying to compete in physical silicon with larger technology companies, and CEO Rene Haas said demand for the product has exceeded $2 billion across fiscal 2027 and 2028.
“The demand for the product is great, and more importantly, I think it underpins the fact that the market for CPUs, for agentic workloads and around inference is just key, and we’re just seeing that grow,” Haas told CNBC on Thursday. CPUs, or central processing units, are core chips that handle general computing tasks, while inference refers to running an AI model after it has been trained.
This story draws on original reporting from CNBC.
