Micron and Qualcomm forecasts ignite $400 billion AI chip stock rally

Micron and Qualcomm forecasts ignite $400 billion AI chip stock rally June 24 : Shares of chipmakers surged late on Wednesday, adding over $400 billion in market value after strong forecasts from Micron Technology and Qualcomm breathed fresh life into Wall Street's recently waning AI stock rally. Micron surged 12 per cent in extended trade after forecasting quarterly earnings above analysts' estimates, signaling that heavy investments in AI-related infrastructure will drive strong demand for its memory chips. Also after the bell, Qualcomm said it expects $15 billion in sales from its data center business by 2029 as it moves beyond its core smartphone chip business and shifts its focus to AI. Western Digital, Sandisk and Seagate Technology, which compete with Micron, all jumped more than 8 per cent. Arm Holdings rallied about 6 per cent, Marvell added almost 4 per cent and Broadcom climbed 2 per cent. Applied Materials and ASML, which sell specialized manufacturing equipment to semiconductor companies, both rose more than 4 per cent. The blowout forecasts from Micron and Qualcomm follow recent worries on Wall Street that valuations for AI-related companies have become stretched following years of gains. The PHLX chip index tumbled 8 per cent on Tuesday, with investors also concerned that massive spending to build AI data centers may take too long to pay off in the form of increased revenue and profits. However, even after this week's weakness, the PHLX chip index remains up 90 per cent so far in 2026. Not including its late-day rally on Wednesday, Micron has gained over 260 per cent year to date.