Semiconductor stocks are rebounding in Wednesday's premarket trading, with Nvidia, AMD, and Intel all posting gains after a series of upbeat updates from key industry players. The moves come as investors reassess the durability of the artificial intelligence spending cycle following last week's sharp selloff.
Nvidia shares advanced more than 1.5%, while AMD and Intel also moved higher. Later indications put Intel's gain above 3%, underscoring the rapid shift in sentiment. The recovery follows a period of heightened volatility in the chip sector, driven by concerns over AI-related debt and valuation levels.
Supermicro and SpaceX Revive AI Trade
Super Micro Computer raised its preliminary fiscal first-quarter revenue guidance to $18.5 billion–$19.5 billion, up from a prior range of $14.5 billion–$15.5 billion. The midpoint of $19 billion represents a $4 billion, or 26.7%, upgrade. The company also lifted its expected gross margins to 12%–12.5%, compared with the earlier 10.4%–10.8% range, citing stronger demand for AI platforms. These figures remain unaudited.
SpaceX added to the optimism by reporting third-quarter revenue of approximately $14.6 billion, exceeding Wall Street's estimate of about $12.9 billion. Notably, its AI business contributed more than half of sales, signaling another source of computing demand beyond traditional data centers.
Dan Niles, founder of Niles Investment Management, suggested the two announcements could spark another AI-stock advance. Even if the sector has already peaked, he noted that history suggests a high probability of at least a short-term rally. The news strengthens the case for near-term equipment orders, though it does not prove that spending will remain profitable over the long run.
AMD's Demand Story
AMD's rally also reflects expectations that companies will continue purchasing server processors to run increasingly complex AI applications. Management has projected server revenue growth of more than 80% year over year during the second half of 2026.
Wedbush analyst Matt Bryson expects third-quarter revenue of approximately $13 billion and sees server CPUs as the likeliest source of upside. In commentary published by Seeking Alpha on Tuesday, Bryson argued that demand for computing associated with agentic AI continues to outstrip supply. He maintained an Outperform rating and a $600 price target, while identifying the Helios accelerator rollout as another potential catalyst.
Nvidia remains more directly exposed to spending on AI accelerators, while Intel's fortunes depend on its manufacturing turnaround and ability to regain ground in server processors.
Meta Earnings to Test Spending Cycle
The largest uncertainty is not whether customers want additional computing power, but whether they can pay for it while delivering returns to shareholders. Microsoft, Alphabet, Amazon, and Meta are expected to spend more than $700 billion in combined capital expenditure this year, with AI infrastructure accounting for a substantial portion of their investment.
For chip suppliers, delayed construction could mean fewer processor deliveries even when cloud demand remains healthy. UBS Global Wealth Management strategists said, according to Reuters on Wednesday, that investors would focus on whether strong core businesses can continue supporting elevated AI investment.
Meta reports results after Wednesday's closing bell. Its capital-spending outlook and evidence of AI monetization could either reinforce the rally or revive fears that investment is outrunning cash generation. Intel reports on October 29 and AMD on November 3, providing further tests of demand and profitability.
This article is for informational purposes only and does not constitute financial advice.
