Chip Stocks Surge: SemiLEDS, Intel, AMD, POET Rally on AI Infrastructure Demand
Semiconductor stocks surged as Intel, AMD, and POET hit fresh highs on AI infrastructure demand, while SemiLEDS jumped 17.96% after a Q3 turnaround. Intel posted stronger-than-expected Q1 earnings and upbeat Q2 guidance.
Semiconductor and optical connectivity stocks surged as investors looked beyond graphics processing units to the infrastructure needed to run autonomous artificial intelligence systems, shifting attention toward CPUs and optical connectivity. SemiLEDS Corporation (NASDAQ: LEDS) is trending up by 17.96%, while Intel, Advanced Micro Devices, and POET Technologies all reached fresh highs, with Intel and POET surging 23% and 28%, respectively, and AMD up over 13%.
SemiLEDS delivered a sharp Q3 FY26 turnaround. Revenue jumped to $9.1 million from $1.1 million in the prior quarter, and net income flipped from a $0.6 million loss to a $1.5 million profit. Gross margin widened from 1% to 27%, helped mainly by high-margin buy-sell equipment orders. Management expects more buy-sell equipment orders in Q4. Cash rose to about $6.0 million, with total assets of roughly $17.5 million and equity of about $3.1 million. Total debt to equity stood at approximately 0.76, and operating cash flow was $2.2 million positive, with free cash flow of about $2.11 million. The stock exploded from $1.52 to an intraday high above $3 within five sessions.
Intel posted stronger-than-expected first-quarter earnings, with data center demand driving a sharp revenue rebound and helping the stock jump over 23% in a single session. The company reported Q1 revenue of $13.6 billion, a 7% year-over-year increase, while adjusted earnings more than doubled to $0.29 per share. A notable highlight was Intel's foundry division, which posted a 16% revenue increase. Intel issued an upbeat Q2 outlook, projecting revenue of $13.8-$14.8 billion, above the $13 billion consensus estimate, and guided for earnings of $0.20 per share, higher than analysts' forecast of $0.09 per share.
AMD also advanced to fresh record highs, benefiting from Intel's strong performance and rising demand trends. Hyperscale customers, including Meta Platforms and OpenAI, increased their deployment of AMD's accelerator systems across large-scale AI infrastructure. AMD was upgraded to 'Buy' from 'Neutral' with a price target raised to $375 from $220, reflecting a 'structural increase' in demand for CPUs.
POET Technologies surged 28% after disclosures linked the company to new commercial activity involving Marvell Technologies. The company's CFO confirmed the order, easing concerns raised by short sellers and boosting confidence in POET's optical interposer technology, which is designed to replace conventional copper connections with faster, light-based data transmission systems. So far this year, INTC and POET stock have surged over 123% and 138%, respectively, while AMD has gained over 62%.