AI-driven semiconductor stocks surge in May

Shares of major chip makers rallied sharply in May as demand for artificial‑intelligence hardware surged. Advanced Micro Devices jumped more than 40%, reporting a 38% year‑over‑year revenue rise to $10.3 billion, driven by a 57% increase in its data‑center segment. Broadcom posted a 29% revenue gain to a record $19.3 billion, with AI‑related sales more than doubling. Qualcomm’s stock also rose about 40% on speculation that it would supply custom AI chips to TikTok owner ByteDance, though the company’s core handset chip sales fell.

Super Micro Computer, a supplier of AI data‑center hardware, saw its shares climb 68% after reporting net sales of $10.2 billion for the quarter ending March, up from $4.6 billion a year earlier, and an improvement in gross margins to 9.9%. Analysts note the rapid growth comes with risks, including short‑seller accusations of circular revenue deals, rising inventory, and exposure to a slowdown in AI spending.