US Chip Stocks Surge! AMD Up Over 5%, Meta Plans to Double AI Computing Capacity

US chip stocks rebounded across the board on Thursday (9th), recovering some of the losses seen earlier in the week. A rally in Chinese semiconductor stocks helped stabilize market sentiment, while reports that Meta Platforms (META-US) plans to double its AI computing capacity next year—and begin mass production of its in-house AI chip Iris in September—eased concerns about a slowdown in AI capital expenditure.

Meta announced on Thursday (9th) the launch of its AI model Muse Spark 1.1, marking its official entry into the AI programming and Agentic AI markets. The company also unveiled its first API pricing plan, aiming to compete directly with OpenAI and Anthropic through more competitive pricing, while accelerating the commercialization of its AI business.

Micron (Micron) (MU-US) announced on Thursday (9th) that it will increase its US investment plan in response to rising memory demand in the AI era. The company pledged to invest over $250 billion in the US by 2035, up from the $200 billion plan announced in June last year, further aligning with former President Trump’s push for semiconductor manufacturing reshoring.

Wall Street is growing concerned as the 'Magnificent Seven'—the group of seven large-cap tech stocks that have driven the US market rally over the past four years—have unexpectedly lagged in this latest upswing. With capital shifting from large tech stocks to the AI chip supply chain, analysts worry that if the Magnificent Seven continue to underperform, the S&P 500 may struggle to reach year-end market expectations.

The once-dominant 'buy chips, sell software' AI investment strategy is also showing signs of weakening. As the market reassesses whether AI capital spending will materialize and whether software companies will truly be disrupted by AI, software stocks have stabilized and begun to rebound, while semiconductor stocks have pulled back from highs—indicating investors are rebalancing their AI investment portfolios.