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June 25 (Reuters) - Global chip stocks surged on Thursday after Micron Technology's blockbuster results reignited the AI-driven rally, as investors grew more confident about persistent demand and tightening supply.
Micron, a key supplier for Nvidia's AI chipsets alongside South Korean chipmakers, surged more than 17% to a record high after it forecast quarterly profit and revenue well above expectations.
The company, whose shares have more than tripled in value 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 added roughly $189 billion in market value at a price level of $1,216.8, taking its total market capitalization to $1.39 trillion.
It also briefly surpassed the market valuations of Meta Platforms andTesla.
Other U.S.-listed chip stocks also rose, with storage and memory rivals Western Digital up 5.6% and SanDisk jumping more than 15%, while Seagate Technology rose 6.7%.
The broader Philadelphia SE Semiconductor Index added 1.9% "For the wider market, this feeds into the AI supply chain, where memory has been a source of nervousness.
Greater supply visibility and continued tightness support pricing across the ecosystem, and this should go some way to abating the recent nervousness around tech," said Ben Barringer, head of technology research at Quilter Cheviot.
The rally slowed across other chip-related stocks though, with U.S.-listed shares of Arm Holdings and Marvell down over 2% each in choppy trading.
Nvidia, the world's most valuable company, also fell 2.3%.
Qualcomm added 3.8% 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 U.S.
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