Computer chip stocks recorded their best quarterly increase on record, with the Philadelphia Stock Exchange Semiconductor index rising 87.8% for the three months that ended Tuesday. The surge represents the biggest quarterly gain in records stretching back to 1994, driven by AI-supercharged demand for memory chips like DRAM and NAND, which have relatively fixed supply due to the cost and time required to build new chip fabs. The result has been significant price increases that are boosting profits across the sector, with the SOX index more than doubling in 2026 through the halfway point of the year.
Micron Technology Reports 1,215% Year-Over-Year Earnings Increase
Micron Technology, a U.S. producer of memory chips, demonstrated the sector's profit explosion through its fiscal Q3 results. Last year in its fiscal Q3 — which ends in May — the company earned $1.91 per share. In its recently reported fiscal Q3 2026, Micron earned $25.11 per share, representing a 1,215% year-over-year increase in earnings.
Shares of Micron have surged 836.5% over the last 12 months, creating more than $1.1 trillion in market value. The stock has experienced significant day-to-day volatility, tumbling 13% last week before surging 16% a couple days later after reporting earnings.
Intel, AMD, and Equipment Makers Post Triple-Digit Quarterly Gains
Intel rose 216.4% in the second quarter, while Advanced Micro Devices increased more than 185.6%. Applied Materials, KLA, and Lam Research — all makers of equipment to produce chips — more than doubled during the quarter.
Chip giants Nvidia and Broadcom, which were big winners in earlier phases of the AI boom, had a strong quarter as well, rising 14.7% and 22%, respectively.
Sector Volatility Surges in June Amid Crash Risk Indicators
Volatility for chip stocks surged in June, with the sector at the heart of a "bloodbath" early in the month. The run-up has alerted some traders and investors to the risk of a bust, which has been a feature of some other giant investment booms of the past.
Scholars have conducted work on predicting market crashes, finding that increases in stock issuance, volatility, and accelerating market gains — as well as outperformance of newer rather than older companies — can help identify booms that subsequently collapse.
FAQ
What caused the record 87.8% quarterly gain in semiconductor stocks?
The Philadelphia Stock Exchange Semiconductor index rose 87.8% for the three months that ended Tuesday due to AI-driven demand for memory chips like DRAM and NAND. These chips have relatively fixed supply because of the cost and time required to build new chip fabrication facilities, resulting in significant price increases that boosted sector profits.
How much did Micron Technology's earnings increase year-over-year?
Micron Technology's earnings increased 1,215% year-over-year. In its fiscal Q3 last year (ending in May), the company earned $1.91 per share. In its recently reported fiscal Q3 2026, Micron earned $25.11 per share. The company's stock rose 836.5% over the last 12 months, creating more than $1.1 trillion in market value.
Which other chip companies posted significant gains in Q2 2026?
Intel was up 216.4% in the second quarter, Advanced Micro Devices rose more than 185.6%, and chip equipment makers Applied Materials, KLA, and Lam Research more than doubled during the quarter. Nvidia and Broadcom, earlier AI boom winners, rose 14.7% and 22%, respectively.
