Tech Stocks Rally as Micron and Qualcomm Ease AI Fears

Tech Stocks Rally as Micron and Qualcomm Ease AI Fears

Strong chip earnings help revive confidence after recent pressure on AI shares.

Technology stocks surged on Thursday as stronger updates from Micron and Qualcomm helped calm concerns that the artificial intelligence rally may be running out of momentum.

Investor sentiment improved after Micron reported that customers had committed $22 billion for its memory chips. Qualcomm also lifted confidence after forecasting $15 billion in sales from its data centre business by 2029. The updates suggested that demand for AI infrastructure remains strong, despite recent worries about stretched valuations.

Micron shares rose sharply in pre-market trading, while Qualcomm also gained strongly. Futures linked to the Nasdaq 100, which includes both companies, climbed 2.2%, pointing to a stronger start for US technology stocks.

The rally was also felt across Asia. Japan’s Nikkei jumped more than 4%, while South Korea’s KOSPI gained 5.5%. These moves show how closely global markets are now tied to the AI and semiconductor trade.

The recent pressure on technology shares had been driven by fears that valuations had become too expensive after years of strong gains. The Nasdaq 100 fell 3.3% on Tuesday, highlighting how quickly sentiment can turn when investors start questioning growth expectations.

However, the latest results show that earnings still matter most. If AI-related companies can continue to report strong revenue growth, rising demand and improving forecasts, investors may be willing to look past high valuations.

Key reasons behind the tech stock rebound include:

• Micron reporting strong customer commitments for memory chips
• Qualcomm forecasting major growth in data centre sales
• Renewed confidence in AI infrastructure demand
• Strong gains across Asian technology markets
• Nasdaq 100 futures pointing higher before the US open
• Investors reassessing recent fears around AI valuations

The main question is whether this rally can last. Technology stocks are not cheap, and expectations remain high. Investors are already pricing in continued double-digit earnings growth into 2027, which means companies have less room for disappointment.

This creates a more selective market. Strong companies with clear earnings momentum may continue to outperform, while weaker AI-linked names could struggle if they fail to justify their valuations.

Oil prices also played a supporting role in the wider market backdrop. Brent crude fell again as tankers exited the Strait of Hormuz, easing supply concerns after recent Middle East tensions. Lower oil prices may reduce inflation pressure, which can help growth stocks by lowering fears of further interest rate rises.

Still, the main driver of Thursday’s market move was technology. The combination of strong chip demand, positive forecasts and renewed AI confidence helped investors return to risk assets.

The dollar remained strong, while gold slipped below $4,000 an ounce for the first time in 2026. This suggests markets are still adjusting to shifting expectations around inflation, interest rates and global growth.

Conclusion

The latest rally in tech stocks shows that the AI trade is not finished, but it is becoming more dependent on real earnings. Micron and Qualcomm have helped restore confidence by showing that demand for chips and data centre infrastructure remains strong.

For investors, the message is clear: AI still has momentum, but valuation discipline matters. Companies that can prove strong earnings growth may continue to lead, while those relying only on hype may face more pressure.

Sources: (Investing.com, Reuters.com)