Major US chip stocks have remained higher on Wall Street on Thursday, 17 September, extending their recovery from a sharp sell-off earlier in the week.
The extended rally was led by Intel, whose shares surged 10% to hit a day’s high of $111 apiece, their highest level in more than two months. The gains were extended across the AI chip segment, with Marvell Technology rising for a third consecutive session and gaining another 8% to $248.
Advanced Micro Devices (AMD) also extended its winning streak to a fourth day, rallying 7% to $547 and moving closer to its record high of $584. Other chip stocks, including Micron Technology and Sandisk, also advanced, gaining 6.5% and 7%, respectively. Nvidia also joined the rally with 3% surge and extends winning run to third day.
Renewed buying after sharp sell-off
The sustained rally comes after chip stocks and other AI-linked companies suffered heavy losses earlier this week following calls from AI industry leaders to slow the pace of frontier AI development.
Anthropic CEO Dario Amodei had called for the industry to slow the development of advanced AI models, arguing that safety measures need time to catch up with the rapid pace of technological progress. OpenAI CEO Sam Altman subsequently backed the call for pacing frontier AI development.
The comments initially raised concerns among investors about the potential impact on AI infrastructure spending, particularly as companies continue to invest billions of dollars in data centres, chips, and related infrastructure.
However, the selling pressure eased in subsequent sessions as analysts maintained that the underlying growth drivers supporting AI infrastructure investment remained intact. MarketWatch cited D.A. Davidson analyst Gil Luria as saying that easing Treasury yields could also support data centre spending, which is sensitive to interest-rate expectations.
Treasury yields add to recovery
The broader improvement in sentiment was also supported by a retreat in Treasury yields. The benchmark 10-year Treasury yield fell 2 basis points to 4.986%, while the 30-year Treasury yield declined 1 basis point to 5.333%. The two-year Treasury yield also slipped 1 basis point to 4.715%.
The moves in the bond market came after the Federal Reserve raised its benchmark interest rate by 25 basis points on Wednesday. The Fed’s latest projections pointed to one additional rate hike this year, while market pricing subsequently reduced expectations for further increases over the following 12 months.
What’s next for AI stocks?
With the Fed decision now behind the market, investor attention is shifting back towards corporate earnings and the outlook for AI-related spending.
The next major catalyst for AI stocks could come from developments around the planned IPOs of major private AI companies. Anthropic has continued to attract attention ahead of a potential public listing, while OpenAI CEO Sam Altman said the company would not go public in 2026, citing the need to focus on safety and alignment work.
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