The gains in U.S. chip stocks on Thursday and Friday mark a dramatic reversal of the selloff this month.

  • The iShares Semiconductor ETF (SOXX) gained 3% in premarket trading on Friday, and the Roundhill Memory ETF (DRAM) advanced 2.4%. 
  • Chip stocks rose sharply on Thursday, with SNDK rising 26%.
  • Friday’s rally followed Amazon and Microsoft raising capital spending to cover higher memory costs as AI-driven demand continued to outstrip supply.

Chip stocks continued their rally for a second day, with fresh triggers coming from Amazon’s upbeat earnings and an unprecedented rebound in the South Korean market, which is heavily weighted towards Samsung and SK Hynix.

Micron shares climbed 3.5% in early premarket trading on Friday, while SanDisk and Western Digital rose over 5%. Legacy chipmakers Intel and Advanced Micro Devices advanced 4.6% and 3% respectively, while Nvidia gained 1%. SK Hynix’s U.S. shares rose nearly 6%.

The iShares Semiconductor ETF (SOXX) gained 3%, and the Roundhill Memory ETF (DRAM) advanced 2.4%. 

Chip stocks gained sharply on Thursday, with SanDisk and Micron gaining 26% and 18.4%, their best move in several months. SNDK emerged as the top S&P 500 gainer.

Record Rebound In Korean Stocks

Leading on that strength, South Korea’s benchmark index, KOSPI, surged a record 18% on Friday, its best move on record. The move was also aided by the country’s fresh attempts to limit wild swings in equities and leveraged investment products.

The gains in U.S. chip stocks mark a dramatic reversal of the selloff this month as a rotation in tech stocks and concerns of overheating pressured the semiconductor trade. As of the last close, SOXX has declined 21.3% so far this month. If the move holds, it would be the fund’s worst monthly performance since December 2002.

Big Tech Strength

Friday’s rally followed Amazon and Microsoft saying they would boost capital spending to offset higher memory costs amid a global supply crunch, underscoring that AI-driven demand continues to outstrip supply. The announcements renewed investor appetite for chip makers while easing fears that hyperscalers could pull back on their massive AI infrastructure investments.

On Stocktwits, the retail sentiment was ‘extremely bullish’ for SNDK, and ‘bullish’ for MU, SKHY, INTC and NVDA. The sentiment was ‘neutral’ for SOXX and ‘bearish’ for DRAM. 

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