What happened: Memory and storage stocks rallied on Thursday. Shares of SanDisk (SNDK) and Western Digital (WDC) gained 10%, and 4%, respectively while chipmaker Qualcomm (QCOM) and machine manufacturer Applied Materials (AMAT) also rose.

What’s behind the move: The iShares Semiconductor ETF (SOXX) ticked up by more than 1% after Micron Technology’s (MU) blowout quarterly results reinforced the narrative that capital spending on artificial intelligence continues to accelerate.

That helped lift sentiment, “suggesting investors remain willing to look through short-term volatility as long as the earnings outlook continues to justify elevated valuations,” said Daniela Hathorn, senior market analyst at capital.com.

Meanwhile, AI chip heavyweight Nvidia (NVDA) slipped after rival Qualcomm (QCOM) forecast $15 billion in new data center revenue as it heavily broadens beyond smartphones.

What else you need to know: Memory has been a major bottleneck in the artificial intelligence trade, with Micron leading the semiconductor complex.

Last month, Micron Technology, Samsung Electronics (005930.KS), and SK Hynix all made headlines as they reached $1 trillion valuations for the first time.

Stocks across the semiconductor complex have been driving the overall tech sector (XLK) up 27% year-to-date, and a whopping 43% since the March 30 lows.

Ines Ferre is a senior business reporter for Yahoo Finance. Follow her on X at @ines_ferre.