Memory stocks surge on AI demand forecasts, driving broad gains across major U.S. indexes by mid-morning trading.
Major U.S. indexes climbed in unison Tuesday, reversing Monday’s divergence as semiconductor stocks led a broad rally. By 11:31 a.m. ET, the Nasdaq Composite rose 1.3%, the S&P 500 gained 0.7%, and the Dow Jones Industrial Average advanced 0.6%, all hitting fresh session highs after a brief early dip.
Memory chip stocks drove the gains, with Micron Technology jumping 10.1% after Morgan Stanley projected a 25% rise in memory prices due to sustained AI demand. SK Hynix surged 10.9%, while the iShares Semiconductor ETF climbed 5.2%. Nvidia and AMD also rose, despite competitive pressures in AI data center chips.
The Dow benefited from strength in industrial stocks, including Caterpillar, offsetting losses from other components. The rally extended Monday’s momentum, with chipmakers remaining the standout sector.