Stock values for major U.S. semiconductor companies increased on Friday, with the PHLX Semiconductor Index closing at a record high. The market activity followed a third-quarter revenue forecast from Intel Corp. that surpassed analyst expectations, with the company citing demand related to artificial intelligence and a stabilizing personal computer market.
Intel released its financial outlook on Thursday, projecting third-quarter revenue in the range of $12.9 billion to $13.9 billion. The midpoint of this range, $13.4 billion, is above the average analyst estimate of $13.23 billion, according to data from Refinitiv.
Following the announcement, Intel’s shares rose 7.6% during Friday’s trading session. In a conference call with analysts, Intel CEO Pat Gelsinger stated that the company was seeing improved stability in the PC market. He also noted that the “surge in demand for AI is driving a great opportunity.”
The rise in Intel’s stock value occurred alongside gains for other prominent chip manufacturers. Shares of Nvidia Corp., a leading designer of chips used for AI applications, increased by 1.9%. Advanced Micro Devices Inc. saw its stock climb by 3%, and Micron Technology Inc. shares rose by 2.6%.
The broader market for semiconductor stocks, as measured by the PHLX Semiconductor Index, gained 1.5% to conclude the trading day at a record closing high. The index tracks the performance of 30 of the largest U.S.-listed companies involved in the design, distribution, and manufacturing of semiconductors.
The market’s performance reflects ongoing investor interest in companies positioned to supply the hardware for developing artificial intelligence technologies. Several technology companies have reported increased investment in AI infrastructure throughout the year.
In a note to clients, analysts at Summit Insights Group commented on Intel’s forecast, stating that the company’s outlook for the PC market had improved. The personal computer sector is a significant revenue source for chipmakers like Intel and has experienced a slowdown in sales following heightened demand earlier in the decade. Intel’s report suggested that inventory levels in that market were beginning to normalize. The trading session concluded with broad-based gains across the semiconductor sector.
