U.S. stock indices reached fresh record highs on Tuesday, driven by a surge in semiconductor and AI-infrastructure stocks. Marvell Technology soared 20% after Nvidia's CEO praised it as 'the next trillion-dollar company' and committed a $2 billion investment. Hewlett Packard Enterprise surged 30% on strong earnings and AI orders. Optical networking and chip stocks rallied broadly, while software stocks pulled back significantly.

UBS analyst Timothy Arcuri raised Micron Technology's price target to $1625, citing a fundamental shift in high-bandwidth memory (HBM) from cyclical to AI-driven structural growth. This sparked a semiconductor rally, with three stocks gaining sympathy: Western Digital (strong fundamentals with long-term agreements), Rambus (undervalued IP licensing play), and onsemi (sympathy rally lacking substance, appearing overvalued).

The Nasdaq 100 crossed 30,000 during intraday trading as semiconductor stocks surged, led by Micron Technology's 18% gain following a UBS analyst price target hike to $1,625. The rally was driven by increased AI spending expectations from hyperscalers, with chip stocks dominating market leadership. The S&P 500 rose 0.6%, while the Russell 2000 outperformed with a 1.7% gain. AutoZone plunged 10.1% after missing revenue estimates despite beating EPS.

Tech stocks surged on Wednesday despite a hotter-than-expected April PPI reading (6% YoY vs 4.8% expected), which rekindled inflation concerns. The Nasdaq 100 gained 0.7% led by semiconductor strength, while rate-sensitive sectors like utilities and financials declined. Nvidia hit record highs above $226 ahead of earnings, Ford surged 11.9% on strong Q1 results, and software stocks like Dynatrace and Doximity fell sharply on disappointing earnings.

onsemi reported strong Q1 earnings with 4.1% revenue growth and beat expectations, driven by data center demand growing 30% sequentially and over 100% YoY. The stock pulled back 5% after hours in a sell-the-news event despite solid margins and positive guidance. Analysts view the dip as a buying opportunity, with support levels in the low $90s and potential for significant upside if the company executes its growth projections.

Nvidia faces investor scrutiny ahead of May 20 earnings as the company maintains 0% official GPU market share in China due to U.S. restrictions on advanced chips, though a booming gray market suggests significant smuggled hardware sales. Despite high analyst expectations (96% Buy rating, 40% upside consensus), the key risk is determining how much backlogged revenue stems from China and how U.S. export controls will impact results. The company's trillion-dollar backlog through 2027 and strong datacenter demand from hyperscalers provide positive catalysts, though stock price action has been tepid compared to other chip stocks.

U.S. stock futures rose on Tuesday following President Trump's announcement of 'Project Freedom' to reopen commercial shipping through the Strait of Hormuz, amid US-Iran tensions. Key movers included Duolingo (down 12.77% despite beating estimates due to weak guidance), Pinterest (up 16.59% on strong Q1 results), AMD (up 1.94% ahead of earnings), and Inspire Medical Systems (down 21.04% after narrowing revenue guidance). Analysts remain optimistic on tech stocks driven by AI investments and strong corporate earnings.

On Semiconductor reported Q1 earnings of 64 cents per share, beating analyst estimates of 60 cents, and revenue of $1.51 billion, exceeding the $1.49 billion consensus. The company's AI data center revenue more than doubled year-over-year with 30% sequential growth. Despite beating expectations, ON stock declined 4.41% in after-hours trading to $97.54. For Q2, the company guided for adjusted EPS of 65-77 cents and sales of $1.535-$1.635 billion.

U.S. stock futures showed mixed performance on Monday with the S&P 500 rising 0.07% and Dow Jones falling 0.22%. President Trump announced 'Project Freedom' to escort stranded vessels from the Strait of Hormuz. Key movers included eBay rising 7.62% after GameStop proposed a $56 billion acquisition, Skycorp Solar soaring 93.16% following an acquisition announcement, and Nebius Group rising 3.42% after agreeing to acquire Eigen AI. Crude oil futures climbed 1.49% amid OPEC+ output decisions.

Analog chips are experiencing a revival driven by AI data center demand. Texas Instruments reported strong Q1 2026 earnings with 22% YOY analog chip sales growth. Three analog-focused semiconductor companies—Analog Devices, Microchip Technology, and onsemi—are highlighted as beneficiaries of this trend, each with different growth drivers including AI revenue, automotive partnerships, and aggressive shareholder returns.

Industrial chip stocks are surging amid accelerating AI demand and a multi-year supercycle driven by datacenter buildout, inventory normalization, and edge computing upgrades. Five key players—Texas Instruments, Analog Devices, Marvell, Microchip Technology, and OnSemi—are positioned to benefit from AI infrastructure expansion and related end-market improvements.

ON Semiconductor shares rose in premarket trading following an expanded partnership with NIO to develop next-generation 900V electric vehicle platforms using ON's EliteSiC technology. Bank of America Securities upgraded the stock, citing improving pipeline, strong free cash flow yield, a $6 billion buyback plan, and potential EBIT margin expansion to 30% by 2028, though noting the timing may be early given ongoing EV market weakness.