AI-related stocks jumped sharply on Thursday after Micron delivered strong results, beating profit expectations and issuing an upbeat outlook. The report renewed interest in AI hardware after weeks of weak performance and investor caution.

Micron became the top gainer in the S&P 500, rising more than 10%. Other memory and storage companies followed, with Sandisk and Western Digital gaining around 6% and 5%, while several AI beneficiaries also moved higher.

Micron attributed its performance to strong data-center demand and a shortage of memory chips. Management said high-bandwidth memory is effectively sold out through 2026, which markets viewed as a sign the cycle may continue.

Still, analysts warn the semiconductor sector remains cyclical and shortages can turn into oversupply. The key question is whether producers can scale output without hurting margins and whether demand stays strong enough to sustain momentum.