Updated

Semiconductor stocks including Micron and Intel extended strong comebacks as investor fears about an AI spending slowdown and the impact of interest-rate hikes subsided. Adding to the bullish tone, Nvidia CEO Jensen Huang said the company expects to sell twice as many chips next year, and options traders piled into unusually bullish tech trades on Thursday as the AI trade rebound gained momentum. The renewed optimism suggests investors are once again betting on continued strength in AI-related capital spending after weeks of volatility. However, not all chip names participated in the rebound: AMD shares remain roughly 12% off their highs as AI slowdown fears continue to weigh on some chipmakers, illustrating that concerns about the durability of AI spending have not fully dissipated across the sector. The divergence between AMD and peers like Nvidia, Micron and Intel highlights uneven investor conviction even as broader sentiment toward AI infrastructure spending improves.