Chip firms surge: Chip firms surge on signs of strong AI-led demand

January 13, 2025

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Artificial Intelligence

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Shares of chipmakers jumped on Monday as Microsoft’s plan to invest $80 billion in AI-enabled data centres in fiscal 2025 spurred bets that semiconductor demand would remain strong.

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 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.

“AI data centers are very chip hungry, that’s why you have people running towards the chip sector right now,” said Michael Matousek, head trader at US Global Investors.

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 Super Micro Computer jumped 9.9%.

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Chip firms surge: Chip firms surge on signs of strong AI-led demand

January 13, 2025

, By admin

Artificial Intelligence

Shares of chipmakers jumped on Monday as Microsoft’s plan to invest $80 billion in AI-enabled data centres in fiscal 2025 spurred bets that semiconductor demand would remain strong.

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 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.

“AI data centers are very chip hungry, that’s why you have people running towards the chip sector right now,” said Michael Matousek, head trader at US Global Investors.

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.

Discover the stories of your interest

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 Super Micro Computer jumped 9.9%.

Disclaimer

We strive to uphold the highest ethical standards in all of our reporting and coverage. We StartupNews.fyi want to be transparent with our readers about any potential conflicts of interest that may arise in our work. It’s possible that some of the investors we feature may have connections to other businesses, including competitors or companies we write about. However, we want to assure our readers that this will not have any impact on the integrity or impartiality of our reporting. We are committed to delivering accurate, unbiased news and information to our audience, and we will continue to uphold our ethics and principles in all of our work. Thank you for your trust and support.

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