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BUZZ-US chipmakers rise as Microsoft plans to invest $80 bln on AI data centers

ReutersJan 6, 2025 11:04 AM

** Shares of U.S. chipmakers rise premarket, alongside global peers, as Microsoft announced plans for AI-enabled data center spending on Friday

** Microsoft MSFT.O to invest about $80 bln on developing data centers to train AI models and deploy AI- and cloud-based applications in FY25

** Citigroup says it is "a modest positive" as it removes the risk of a cut to capital expenditure

** Memory chipmaker Micron Technology MU.O rises 3%, AI chipmaker Nvidia NVDA.O 1.9%, and AI server maker Super Micro Computer SMCI.O 2.3%

** Networking chipmakers Broadcom AVGO.O and Marvel Technology MRVL.O rise 1.2% and 1.9% respectively; Qualcomm QCOM.O adds 1.3%

** Advanced Micro Devices AMD.O and Intel INTC.O, which make chips for personal computers, servers and AI chips, climb 2.7% and 1.1% respectively

** U.S.-listed shares of contract chipmaker Taiwan Semiconductor Manufacturing TSM.N rise 4.1%

** European chip stocks also rise

** The iShares Semiconductor ETF SOXX.O up 1.9%; VanEck Semiconductor ETF SMH.O up 2%

** The Philadelphia Semiconductor Index .SOX jumped 19.3% in 2024

(Reporting by Medha Singh)

((medha.singh@thomsonreuters.com))

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