Chip Stocks Surge as AI Demand Drives Growth
Semiconductor stocks Advanced Micro Devices Inc. (AMD), Marvell Technology Inc. (MRVL), and Micron Technology Inc. (MU) have reached new highs, driven by surging artificial intelligence demand for chips.
On April 24, AMD stock rose more than 1% to an intraday high of $310.22, while MRVL stock climbed over 5% to $167.86. MU shares hit $493.62 in the day's trading session before closing about 1% lower.
The strong demand for chips is being driven by growing AI adoption and rising data center spending, with AMD benefiting from Stifel raising its price target on the stock to $320 from $280 and maintaining a 'Buy' rating. Thirty-six of 49 analysts covering AMD have a 'Buy' or higher rating.
MRVL's shares have surged over 207% in the past year, driven by recent deals with top hyperscalers, including an acquisition of Polariton Technologies to bolster its photonic solutions portfolio and talks with Google to develop custom chips. Retail sentiment on Stocktwits is extremely bullish around MRVL stock.
MU stock has skyrocketed over 560% in the past year, benefiting from increased demand for high-bandwidth memory products. The company's second-quarter 2025 revenue nearly tripled to $23.86 billion after soaring past analysts' expectations.