US-listed chip stocks surged on Thursday, 24 April, with most names posting double-digit gains in an otherwise subdued market, as investors regained confidence in the AI trade following blockbuster earnings from Intel.
The strong results and upbeat outlook triggered a sharp rally in Intel shares, which jumped 27.61% to their highest level since 2000, hitting $85.22 apiece and pushing the company’s market capitalisation above $416 billion.
Peers also rallied sharply. Advanced Micro Devices and Arm Holdings surged 15% and 16%, respectively, hitting record highs. Qualcomm gained over 13% to $139, its highest level since early February, while Micron Technology advanced 5.2% to $506.99.
, now the world’s most valuable company, rose 5.15% to $209. Much of last year’s rally in chip stocks was driven by Nvidia, supported by strong demand for its graphics processing units (GPUs) used in training large AI models.
Intel posts upbeat earnings
Intel reported of $13.58 billion, up 7.2% year-on-year, while adjusted earnings per share came in at $0.29, beating analysts’ estimates. Gross margin stood at 41% on an adjusted basis.
Buoyed by the strong performance, Intel issued a robust outlook for the second quarter, projecting revenue in the range of $13.8 billion to $14.8 billion, compared to analysts’ average estimate of $13 billion, according to Bloomberg data.
The outlook has boosted investor confidence in sustained demand for central processing units (CPUs), which are critical for powering AI-driven applications.
The upbeat guidance also signals progress in CEO Lip-Bu Tan’s turnaround strategy, aimed at positioning Intel to capitalise on the expanding artificial intelligence ecosystem.
Earlier this month, -led SpaceX and Tesla on the recently launched Terafab project to build semiconductor capacity. The initiative aims to deliver massive computing power, targeting around 1 terawatt of annual capacity.
With Friday’s rally, Intel’s month-to-date gains have risen to 84%, contributing to a 333% surge since August 2025. Prior to this recovery, the stock had declined 61% between January 2024 and July 2025, hitting its lowest level since 2009.
Chipmakers benefit from massive AI infrastructure investments
Chip stocks have been among the biggest beneficiaries of the spending surge by tech giants on scaling up their AI infrastructure. Alphabet, Microsoft, Amazon, and Meta Platforms are expected to spend more than $600 billion on AI infrastructure this year, boosting demand for chips, servers, storage, and networking equipment.
The semiconductor sub-industry alone is expected to post first-quarter earnings growth of 109.2%—significantly higher than the broader S&P 500 information technology sector, which is projected to grow at 48.2%, Reuters reported, citing LSEG data.
AI-related and other Big Tech stocks were under pressure earlier this year as investors grew uneasy about heavy spending without near-term visibility on faster revenue growth, stronger margins, and higher cash flows.
(With inputs from Bloomberg and Reuters)
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