Strong AI Demand Boosts Industry Expectations, Leading to Broad Rebound in US Semiconductor Stocks
Source: Global Market Report
On July 6, driven by the continued robust demand for Artificial Intelligence (AI) hard tech and multiple positive industry expectations, the US stock market's semiconductor sector reversed last week's lackluster performance and saw a broad rebound. Core stocks throughout the memory chip and custom chip industry chains collectively surged, demonstrating a significant recovery in market confidence regarding the outlook for the global semiconductor industry.
Industry analysts pointed out that this week’s intensive moves by leading global memory chip giants are the key catalyst behind this sector’s rebound. South Korea's semiconductor giant Samsung Electronics is expected to release its preliminary Q2 earnings report on July 7 local time. Market sources indicate that, due to severe supply shortages caused by AI applications driving demand for high-performance chips, Samsung Electronics plans to raise the average selling price of dynamic random access memory (DRAM) chips by as much as 20%. At the same time, another major South Korean memory chip giant, SK Hynix, is preparing for its official Nasdaq debut this Friday, expecting to list in the form of American Depositary Receipts (ADR) and aiming to raise up to $29 billion. Currently, Samsung Electronics, SK Hynix, and US-based Micron Technology jointly monopolize the core production capacity of High Bandwidth Memory (HBM) worldwide; their technology and output are critical to the supply chain security of leading AI chip companies such as Nvidia.
Boosted by multiple positive drivers, the US stock market’s memory chip sector performed strongly on Monday. Micron Technology's share price jumped as much as 4% intraday, ultimately closing up 1%; Western Digital and Seagate Technology surged over 7% and 5%, respectively. In the computing infrastructure and custom chip domain, Advanced Micro Devices (AMD) shares soared more than 6%, Marvell Technology rose 1.6%, and Nvidia also closed slightly higher.
In addition, the deep integration within the industry’s supply chain has further reinforced market confidence. Wireless communications and semiconductor giant Broadcom announced that it has expanded its cooperation agreement with Apple, extending its contract to supply custom chips through 2031, ensuring chip supply for multiple generations of core products such as the iPhone. Stimulated by this news, Broadcom’s share price climbed nearly 4% on the day, while Apple’s stock rose 1.3%.
Commenting on this market performance, D.A. Davidson analyst Gil Luria noted that, ahead of the release of critical news from the two major Korean chip giants, capital is rapidly flowing back into the semiconductor sector, with a clear “cyclical return” of market optimism. UBS Global Head of Equities Ulrike Hoffmann-Burchardi emphasized that, among the wave of global artificial intelligence infrastructure construction, semiconductor equipment, foundry, central processing unit (CPU) computing architectures, and memory chips remain the core foundational support, and their long-term investment value remains solid.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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