Micron was the biggest gainer among semiconductor stocks with a 10% rise, while chip-making equipment companies like Applied Materials, Lam Research and KLA Corp rose between 5.3% and 6.1%.
The ref=”dofollow” data-ga-onclick=”Inarticle articleshow link click#Tech#href” href=”https://economictimes.indiatimes.com/topic/philadelphia-semiconductor-index” target=”_blank”>Philadelphia Semiconductor Index firmed 4% and hit its highest since mid-October.
Citigroup said Microsoft’s spending plan although in line with analysts’ estimates was a “modest positive” update as it removed the risk of a drop in capital expenditure.
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Contract manufacturer Foxconn’s record revenue for the fourth quarter on the back of strong demand for AI servers also added to the overall euphoria in the chip sector.
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Nvidia, a Foxconn customer, added 4.6%. The AI bellwether’s CEO, Jensen Huang, is set to deliver a keynote speech at the CES trade show later in the day. AI server maker ref=”dofollow” data-ga-onclick=”Inarticle articleshow link click#Tech#href” href=”https://economictimes.indiatimes.com/topic/super-micro-computer” target=”_blank”>Super Micro Computer jumped 9.9%.
