Since the generative artificial intelligence (AI) boom began with the launch of OpenAI ChatGPT in late 2022, Nvidia has become the most dominant name in global AI infrastructure development. While the chipmaker is still posting strong growth and is expected to post revenue growth of around 70% in the current fiscal year, Wall Street investors’ focus is now shifting to other companies in the AI supply chain that have previously received less attention.
The shift in market sentiment became more evident this week with shares of Advanced Micro Devices (AMD) and Intel surging around 25%, while memory maker Micron Technology rose more than 37% and optical cable company Corning gained around 18%. All of these companies have doubled their respective market values over the course of 2026, with Intel surging more than 200%, far outpacing Nvidia’s performance which has only risen around 15% so far this year.
Mizuho analyst Jordan Klein described the developments as early signs of a “power shift” in the AI industry. Investors now see AI growth no longer focused solely on graphics chips (GPUs), but rather requiring more other components to support the development of large-scale data centers.
Memory and CPU Demand Increases
The memory sector is one of the biggest beneficiaries of the global supply shortage that has aggressively raised chip prices. Micron, previously considered an old player in the semiconductor industry, has now emerged as one of the hottest technology stocks after its market value exceeded US$800 billion for the first time. The company's shares have jumped more than 750% in a year. Its CEO, Sanjay Mehrotra, said that major customers are currently only receiving about 50% to two-thirds of the number of chips they need due to supply constraints.
According to a CNBC report, in addition to memory, demand for central processing units (CPUs) has also increased again after previously being overshadowed by the popularity of Nvidia's GPUs. The new trend in AI is now more focused on the development of "AI agents" that require more extensive processing capabilities for automation tasks and enterprise applications. Bank of America estimates that the data center CPU market could more than double from US$27 billion in 2025 to US$60 billion by 2030.
AMD has been among the companies in the spotlight after its latest financial results beat market expectations on strong growth in its data center business. AMD CEO Lisa Su said the use of AI agents is accelerating the global AI adoption cycle and increasing demand for server CPUs. AMD now expects growth of around 35% in the server CPU market over the next three to five years, higher than its previous forecast of 18%.
Meanwhile, Intel, which was previously seen as lagging behind in the AI race, has also shown a resurgence after receiving a large investment from the US government last year. Intel shares surged after media reports said Apple is in talks with Intel and Samsung to produce processor chips for Apple devices in the US.
Corning also gained new momentum after signing a major partnership with Nvidia to build three new optical technology factories in the US. Nvidia reportedly has the right to invest up to US$3.2 billion in Corning to accelerate the use of fiber optic cables in next-generation AI data center systems. Corning also previously signed a $6 billion contract with Meta to supply fiber optic cables for the company's AI data center through 2030.
Analysts Warn of Correction
Nvidia CEO Jensen Huang has called the current development the largest infrastructure development in modern history. However, some analysts are starting to warn that the current rise in semiconductor stocks is increasingly reminiscent of the dot-com bubble of the late 1990s. BTIG expects the PHLX semiconductor index to potentially correct by around 25% to 30% after its sharp rise this year.
