NVIDIA Started The AI Rally — Now Memory And Power Chip Stocks Are Stealing The Spotlight

Semiconductor analysts said the artificial intelligence spending boom continues to reshape the chip industry, driving long-term demand across memory, networking, power semiconductors, and AI infrastructure companies.The PHLX Semiconductor Index has gained 60% year-to-date and over 131% in the last 12 months.Seaport Research Says AI Demand Is Rippling Across ChipsGoldberg said AI-driven demand is fundamentally changing parts of the industry, particularly the memory markets, where companies are now securing long-term supply contracts that were historically difficult to obtain.While remaining positive on the long-term AI cycle, Goldberg warned that semiconductor stocks may face periodic pullbacks because markets currently expect near-perfect execution from companies riding the AI wave.Melius Research Says AI Boom Still Has Room To RunMelius Research head of technology research Ben Reitzes told CNBC on Monday that the semiconductor rally still has further upside because hyperscalers continue funneling operating cash flow into AI infrastructure investments.He argued that AI infrastructure demand remains strong because highly profitable technology companies are funding most investments internally rather than relying heavily on external financing.Reitzes also highlighted geopolitical risks tied to Taiwan and semiconductor supply chains, saying the U.S. still needs to accelerate domestic chip manufacturing investments.He said long-term supply agreements could make memory earnings more predictable and potentially support higher valuation multiples over time.Price Action: NVIDIA shares were up 1.71% at $224.38, Broadcom shares were up 1.09% at $415.56, SanDisk shares were up 2.15% at $1413.00, Intel shares were up 4.15% at $115.40 and Micron Technology shares were up 4.04% at $727.00 during premarket trading on Wednesday, according to Benzinga Pro data.Image via ShutterstockMarket News and Data brought to you by Benzinga APIs© 2026 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.To add Benzinga News as your preferred source on Google, click here.