Qualcomm leads gains while Big Tech investments signal long-term growth for the sector
Semiconductor stocks surged on Thursday, driven by renewed investor optimism around artificial intelligence and strong signals from major technology companies increasing their infrastructure spending. Qualcomm led the rally, jumping as much as 9% in premarket trading, while peers such as Broadcom (AVGO), Intel (INTC), and AMD (AMD) also posted notable gains.
The primary catalyst behind the move was the latest earnings reports from major tech players, including Meta Platforms and Microsoft, which highlighted plans to significantly increase capital expenditures on AI infrastructure. These investments are expected to drive demand for high-performance chips, data processing units, and memory solutions, benefiting a wide range of semiconductor companies.
Wall Street analysts are particularly bullish on chipmakers producing central processing units (CPUs) and AI-related hardware, as the rise of “agentic AI”—where autonomous systems act on behalf of users—requires increasingly powerful computing capabilities. Companies specializing in storage and memory, including Western Digital and Seagate, also saw their shares climb following strong earnings results, further reinforcing the sector’s momentum.
Qualcomm’s own performance added to the positive sentiment. The company recently reported better-than-expected quarterly results and indicated that the Chinese smartphone market may be stabilizing, a key development given its heavy exposure to handset chips. Additionally, Qualcomm revealed plans to supply custom silicon to a major hyperscaler later this year, signaling further diversification beyond its traditional markets.
Investor enthusiasm has also been fueled by reports that OpenAI is collaborating with Qualcomm on next-generation smartphone processors. This development highlights the growing convergence of AI and mobile technology, positioning chipmakers at the center of future innovation.
Overall, the surge in semiconductor stocks reflects a broader shift toward AI-driven growth. As Big Tech continues to invest aggressively in infrastructure, chipmakers are poised to remain key beneficiaries of this transformative trend.
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