AI chip stocks rally as semiconductor sector rebounds

Major U.S. stock indexes showed a mixed performance on Tuesday, June 9, as a sharp rebound in semiconductor and artificial intelligence stocks contrasted with weakness in other sectors. The divergent moves followed a significant selloff late last week that was triggered by disappointing guidance from chipmaker Broadcom and concerns over high valuations.

Technology stocks, particularly those tied to AI hardware, led the market's recovery. In premarket and early trading, shares of Marvell Technology surged, building on a strong gain from Monday after the company was announced as an upcoming addition to the S&P 500 index. Other chipmakers, including Micron Technology, Qualcomm, and Western Digital, also posted solid gains. Analysts noted the rally indicated sustained investor confidence in long-term AI hardware demand, which had been questioned after Broadcom's report.

The positive sentiment extended to data center infrastructure. Shares of Applied Digital jumped after the company announced a landmark 15-year lease agreement for its Delta Forge 2 AI data center facility. The contract with an investment-grade hyperscaler client is projected to generate approximately $5.2 billion in...