The AI Trade Is Off to a Hot Start This Week as Chip, Memory Stocks Surge

US tech and semiconductor stocks jumped sharply as the AI trade rebounded from a recent pullback. AMD led the move, rising 8%, while other chip and hardware names including Qualcomm, ON Semiconductor, Microchip Technology, Nvidia, TSMC, Broadcom, Micron and Intel also traded higher. The Philadelphia Semiconductor Index rose more than 3%, and the Roundhill Memory ETF gained 8%. Bank of America characterized the recent decline as a “healthy reset” rather than a sign of weakening AI demand, arguing that consolidation in tech often precedes renewed momentum. The note also highlighted expectations that cloud and AI spending could reach $1.5 trillion next year, supporting further upside for chips, memory and networking hardware. Overall, the article signals improving sentiment across the AI supply chain and a potential continuation of the tech rally if demand and capex remain strong.