Chip Stocks Rally on Improved Demand and Government Engagement

Chip stocks outperformed the broader market Monday, buoyed by Micron Technology's raised guidance and strategic industry developments. The PHLX Semiconductor Index climbed 1% as the S&P 500 remained flat.

Micron shares ROSE 3% after lifting its fiscal Q4 revenue forecast to $11.2 billion, citing strong DRAM pricing fueled by AI demand. "Significant upgrades will follow as AI applications scale over the next three years," said Chief Business Officer Sumit Sadana. The company committed $200 billion to U.S. manufacturing and R&D through 2040.

Sector momentum strengthened as Nvidia and AMD struck a revenue-sharing deal with the U.S. government, while Intel's CEO prepared for White House talks. The moves signal both commercial vigor and regulatory alignment for semiconductor firms.