Chip, Storage shares rallied in overnight trading. SanDisk up 6.7%; SOXL, Broadcom up over 6%; Micron, Credo up over 4%; Applied Materials, Western Digital, Lam Research up over 3%.

Alphabet said on Wednesday that capital expenditure could as much as double this year, in yet another aggressive spending ramp-up by the Google parent as it deepens investments to push ahead in the AI race.

Chip supplier Qualcomm forecast second-quarter revenue and profit below Wall Street estimates on Wednesday, expecting a global memory supply shortage to hit mobile phone sales. Qualcomm stock fell about 10% in overnight trading.

Shares of Arm Holdings fell over 7% on Wednesday as its licensing revenues slightly missed Wall Street estimates, despite a push by the company to boost the segment with new chip technology designs.

The company forecast fourth-quarter revenue above Wall Street estimates on Wednesday, driven by demand for its energy-efficient chip designs used in artificial intelligence applications from data centers to smartphones.