Micron, Intel and AMD add $2 trillion in AI-driven second-quarter rally

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Micron, Intel, AMD AI rally

Highlights

Micron rises over 240% in Q2, adding $920 billion in market value, with revenue quadrupling and gross margin reaching 84.9% in Q3.
Intel jumps 216% in Q2, adding $480 billion in market cap amid U.S. factory buildouts and strong CPU demand for AI workloads.
Broader AI infrastructure trade lifts sector as Marvell gains 200%, Arm rises 134%, and VanEck Semiconductor ETF (SMH) advances 71% for its best quarter since 2000.

Second-quarter gains spread across chip suppliers

As reported by CNBC, the second-quarter rally in semiconductor stocks extends beyond Nvidia as investors shift capital toward companies supplying memory, processors and other AI infrastructure. The move leaves Micron, Intel and AMD as the 10th, 11th and 12th most valuable U.S. technology companies by market capitalization.

Micron rises more than 240% during the quarter, adding roughly $920 billion in market value. The company, one of the three major computer memory producers, recently reports quarterly revenue more than quadrupling as AI chipmakers drive memory prices sharply higher, while gross margin climbs to 84.9% in the third quarter from 39% a year earlier.

Intel jumps 216% in the quarter, adding about $480 billion in market capitalization as it builds U.S. chip factories and benefits from renewed demand for central processing units as more AI workloads move onto devices. AMD nearly triples and adds $615 billion in value, helped by its processor business and its position in graphics chips, although it remains well behind Nvidia in that market.

Broader AI infrastructure trade lifts the sector

Barclays analyst Anshul Gupta says a rotation out of AI hyperscalers and into AI enablers shifts investor enthusiasm toward semiconductor companies. Nvidia remains the largest company by market value and continues to post strong revenue growth, but its stock gains 15% in the second quarter, trailing several other chip names.

Among major hyperscaler customers, performance is mixed in the period, with Meta down almost 2% and Alphabet up 24%. Analysts say the market move suggests a changing of the guard in AI as investors back companies making semiconductor products that complement Nvidia's chips and stand to benefit from heavy spending on AI data centers.

Other parts of the AI supply chain also surge. Marvell gains about 200%, Arm rises 134%, and the VanEck Semiconductor ETF, trading under ticker SMH, advances 71% for its strongest quarterly performance since the fund begins trading in 2000.

In our earlier article on TSMC (TSM) stock, we highlighted how sustained AI chip manufacturing demand and expanding global capacity were lifting orders and factory utilization. We also noted a bullish technical setup supported by a positive earnings outlook and TSMC’s leadership in advanced-node production, with traders watching key support and resistance levels for a potential breakout.

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