The generative AI boom ignited by ChatGPT's launch in late 2022 initially crowned NVIDIA (NVDA.US) as the undisputed champion of AI infrastructure investment. However, as the AI supply chain expands, Wall Street capital is now flowing into a broader array of hardware companies previously not in the spotlight. This week, this "broadening rally" within the AI ecosystem intensified significantly. Shares of Advanced Micro Devices (AMD.US) and Intel (INTC.US) each rose approximately 25%, while memory chip giant Micron Technology (MU.US) surged over 37%. Optical materials specialist Corning (GLW.US) also gained around 18%. These four companies have all seen their stock prices more than double year-to-date, with Intel's gains exceeding 200%. In contrast, NVIDIA's shares are up about 15% this year, only slightly outperforming the Nasdaq index. Mizuho analyst Jordan Klein suggested this shift might signal "a changing of the guard within AI." The market is increasingly convinced that AI infrastructure build-out is not a short-term trend, and data centers will require diverse, advanced hardware components for years to come.

Memory chips have emerged as one of the hottest recent themes. A global shortage is driving prices higher, making 47-year-old Micron Technology one of the market's most active trades. The company's market capitalization surpassed $800 billion for the first time this week, with its stock soaring over 750% in the past year. CEO Sanjay Mehrotra previously stated that due to supply constraints, core customers are currently receiving only "50% to two-thirds" of their required memory chips.

Simultaneously, the AI frenzy is reigniting market focus on CPUs. In recent years, as tech giants like OpenAI, Anthropic, Alphabet (GOOG.US, GOOGL.US), Microsoft (MSFT.US), and Amazon.com (AMZN.US) made massive GPU purchases, CPUs were somewhat marginalized. However, as AI development shifts from chatbots towards "AI agents," CPU demand is rebounding rapidly. Bank of America forecasts the data center CPU market will grow from $27 billion in 2025 to over $60 billion by 2030.

AMD's recent earnings report further solidified this trend. The company exceeded market expectations for revenue, profit, and guidance, with particularly strong growth in its data center segment. CEO Lisa Su stated the company now projects a 35% annual growth rate for the server CPU market over the next 3-5 years, significantly higher than the 18% forecast given last November. "AI agents are driving enormous demand across the entire AI application cycle, and we are very excited about that," Su remarked. Wall Street firms subsequently upgraded AMD's rating. Both Goldman Sachs and Bernstein raised their ratings to "Buy," citing a long-term structural opportunity in CPU demand.

On the other hand, Intel, the long-time CPU leader that initially missed the AI wave, is also staging a recovery. Last year's substantial U.S. government investment marked a crucial turning point. Intel's stock posted its best monthly performance ever in April, gaining over 100%, and continued its strong ascent into early May. The market has also recently focused on potential collaboration between Apple (AAPL.US) and Intel. Reports suggest Apple is in discussions with Intel and Samsung regarding chip foundry services for U.S. market devices.

Beyond the chip sector, AI infrastructure development is fueling a boom in the optical communications industry. Corning announced a major cooperation agreement with NVIDIA this week to build three U.S. factories dedicated to producing optical technology products for AI systems. Under the agreement, NVIDIA could invest up to $3.2 billion in Corning. This is seen as a significant signal of NVIDIA's gradual shift from traditional copper cables towards optical fiber interconnects. NVIDIA CEO Jensen Huang stated, "We are scaling our optical communications business to a level never seen before," adding that the global economy is undergoing "the largest infrastructure buildout in human history."

Nevertheless, some analysts are beginning to caution about overheating risks in the AI sector. BTIG analyst Jonathan Krinsky noted that the current semiconductor rally bears a strong resemblance to the 1999 internet bubble period. With the Philadelphia Semiconductor Index up 66% this year, he warned it could face a potential correction of 25% to 30%.