Global chip stocks rose on Thursday after blockbuster results from Micron Technology reignited an AI-driven rally, as investors grew more confident about continued supply and demand tightening.

Micron, a key supplier for Nvidia’s AI chipsets along with South Korean chipmakers, jumped more than 17% in US premarket trading as it forecast quarterly profit and revenue that beat expectations.

The company, whose stock value has more than tripled so far this year, also said its customers had committed $22 billion to lock in supplies of memory chips, underscoring how AI-driven demand is tightening the market.

The stock was on track to add about $214 billion in market value at a price level of $1,237.91, taking its total market capitalization to $1.39 trillion. That puts Micron behind Meta Platforms and Tesla, which are valued at $1.41 trillion and $1.42 trillion, respectively.

Other US-listed chip stocks also rose, with storage and memory peers Western Digital and SanDisk each jumping more than 10%, while Seagate Technology rose 9%.

US-listed shares of Arm Holdings and Marvell rose between 4% and 6%, while Broadcom gained about 2%. Nvidia, the world’s most valuable company, rose 1.2%.

Qualcomm rose nearly 12% after the chip designer said it expects to generate $15 billion in sales from its data center business by 2029 as it moves beyond its core smartphone chips.

Global tech shares fell earlier this week, with US chip stocks retreating from record highs as investors reassessed high AI-driven valuations and questioned how quickly heavy spending on data center infrastructure would turn into profits.

Micron, the main supplier for Nvidia’s AI processors and the only US-based maker of high-bandwidth memory (HBM) chips, said demand far outstrips supply, allowing it and rivals SK Hynix and Samsung Electronics to charge a premium. Analysts at DA Davidson said Micron had entered a “new era” marked by unprecedented visibility and a memory cycle that was “far from over”. That raised the stock’s price target to a Wall Street high of $2,000, nearly double its last close of $1,048.51.

Tech stocks rally from Seoul to Frankfurt

In Europe, Dutch chip-equipment maker ASML, the region’s most valuable company, rose nearly 4% following two days of heavy losses as investors took profits after a record surge. Infineon, STMicroelectronics and ASM International rose between 3% and 6%, helping to provide key support to benchmark indices. Europe’s tech index was the biggest sectoral gainer, up more than 2%, bringing the year-to-date gain to 21.4%. In Asia, South Korean chip heavyweights SK Hynix and Samsung Electronics closed up 13% and 5.3%, respectively. “We expect tight conditions to continue beyond calendar 2027,” Micron CEO Sanjay Mehrotra said, pointing to strong demand and structural supply constraints. Analysts at JP Morgan said the company’s shift to multi-year customer contracts was “fundamentally transforming” its business model and underpinning a more sustainable earnings profile.

Little sign of demand destruction

JPMorgan said it saw few signs of demand destruction, adding that tight supply should continue and recommending investors “add on any dips” while maintaining an overweight stance on South Korea.

“The memory shortage was driven by the explosive need for AI factory infrastructure… and we believe memory’s role as a strategic asset in artificial general intelligence continues,” US Bank analysts said. South Korea’s SK Hynix also said Wednesday it plans to raise up to $29.4 billion through a U.S. stock market listing, fueling investor expectations of a valuation gap between the chipmaker and its smaller U.S. rival Micron.