Chipmakers Rally as Market Skepticism Persists Over AI Valuations

Micron’s aggressive earnings forecast acted as the primary catalyst for the sector’s optimism, emboldening investors who have been wary of the current tech cycle. Qualcomm further supported this positive sentiment, climbing 3.8% after projecting substantial long-term revenue gains from its data center business through 2029. However, the enthusiasm for hardware manufacturers failed to translate into a sustained rally for the technology sector as a whole.

Major players like Apple and Microsoft saw unstable trading patterns, dragging the Nasdaq Composite down by 0.46%. The S&P 500 finished flat, while the Dow Jones Industrial Average managed a marginal 0.14% gain. European markets countered the domestic slump, with the STOXX 600 rising 0.80% despite persistent economic headwinds. As the U.S. dollar holds near a one-year peak, the market remains caught between the promise of artificial intelligence and the reality of potentially overstretched valuations.