Intel jumps 11% as Google names it AI chip manufacturer; ASML surges on Musk Terafab catalyst, SOXX +5.9%

Intel Corp. surged 11% after Alphabet Inc. named it as the manufacturer for 3 million AI chips destined for 2028 deployment, and ASML Holding N.V. gained 6.5% after Elon Musk declared it "arguably the greatest company in Europe" ahead of a joint Terafab announcement. Semiconductor stocks staged their sharpest single-day rebound of the month: the SOXX ETF climbed 5.87%, the Nasdaq Composite added 0.86% to 25,929.66, and the S&P 500 edged up 0.30% to 7,405.73, snapping back from last week's chip-led selloff that sent the SOXX down more than 10%.

Today's biggest movers

Intel jumps 11% as Google commits to 3 million AI chips

Intel Corp. (NASDAQ: INTC) closed at $110.27, its largest single-session gain in over a year, after a cluster of partnership announcements over the weekend reframed the foundry recovery story. Alphabet Inc.'s Google committed to contracting Intel to manufacture approximately 3 million of its custom AI accelerators for delivery in 2028, one of the largest third-party foundry mandates in the company's history. Foxconn simultaneously announced a strategic collaboration with Intel to jointly develop next-generation AI infrastructure platforms, and Hitachi entered a separate agreement with Intel covering physical AI, advanced computing, and digital infrastructure.

Wells Fargo raised its Intel price target from $85 to $110, and Barclays lifted its target from $65 to $100; both firms maintained neutral-equivalent ratings, noting that Q1 2026 showed a net loss of approximately $3.73 billion and negative free cash flow. Intel has nonetheless gained 180% year-to-date as investors price in a multi-year foundry rebound. Today's session was a sharp reversal from Friday's chip-sector rout, which sent INTC down alongside the broader semiconductor complex.

Applied Materials and Lam Research rally on equipment supercycle data

Applied Materials Inc. (NASDAQ: AMAT) surged 8.64% to $492.17 after reporting record Q2 fiscal revenue and raising its semiconductor equipment business growth forecast for calendar 2026 to above 30%. Management also increased the quarterly dividend by 15%, extending a nine-year streak of consecutive increases. Mizuho analyst Vijay Rakesh raised his price target to $540 from $500 with an Outperform rating, Cantor Fitzgerald moved to $575 from $550, and Deutsche Bank lifted its target to $550 from $450, all with buy-equivalent ratings. Morgan Stanley took the other side, downgrading Applied Materials to Equal Weight from Overweight with a $502 target, pointing to potential DRAM wafer fab equipment revisions in the second half.

Lam Research Corp. (NASDAQ: LRCX) gained 6.98% to $324.45, lifting its year-to-date return to 75%. Lam is rising on the same AI infrastructure spending wave as Applied Materials, though analysts note that ongoing U.S.-China chip export restrictions continue to create uncertainty around second-half demand forecasts. The stock's 52-week range expansion of nearly 5% intraday reflected strong conviction buying rather than short covering.

ASML climbs 6.5% on Musk endorsement and Terafab conference preview

ASML Holding N.V. (NASDAQ: ASML) gained 6.54% to $1,749.04 after Elon Musk posted over the weekend that ASML is "arguably the greatest company in Europe." The remark preceded a confirmed appearance by Musk at ASML's private annual technology conference on June 9-10, where he will join CEO Christophe Fouquet for a fireside chat on Terafab, a joint venture between SpaceX and Tesla targeting a cutting-edge semiconductor fabrication facility in Texas at an estimated cost of at least $55 billion. ASML's own 2026 guidance calls for total net sales of EUR 36-40 billion with a gross margin in the 51-53% range, backed by a Q1 gross margin of 53.0%.

Bank of America analyst Didier Scemama raised his price target to EUR 1,921 from EUR 1,710, keeping a Buy rating. JPMorgan lifted its target to EUR 1,900 from EUR 1,515 with an Overweight rating, and Morgan Stanley moved to EUR 1,660 from EUR 1,400, also Overweight. ASML is up 50% year-to-date and is now one of the 10 largest companies in the world by market capitalisation.

AMD, SMCI, and Tesla extend the rebound

Advanced Micro Devices Inc. (NASDAQ: AMD) rose 5.14% to $490.33, extending its year-to-date gain to 119%. AMD's Q1 2026 results beat consensus estimates on both earnings per share and revenue, with total revenue up 38% year over year as its data center GPU segment continued to take share. Barclays carries a $665 price target on the stock, representing meaningful upside from the current price.

Super Micro Computer Inc. (NASDAQ: SMCI) bounced 5.64% to $43.99 after falling more than 11% on Friday. The recovery tracked comments from Nvidia Corp. (NASDAQ: NVDA) CEO Jensen Huang, who reiterated that the semiconductor supply crunch is likely to persist for several years as AI infrastructure build-out demand continues to run ahead of capacity. Super Micro, which assembles AI server racks using Nvidia GPUs, is directly exposed to this dynamic.

Tesla Inc. (NYSE: TSLA) climbed 4.59% to $408.95, continuing to draw momentum from JPMorgan's June 5 upgrade from Underweight to Neutral, which included a price target increase of more than 200% to $475. The firm cited an expected earnings inflection in 2028 and projected roughly 50% annual earnings growth through 2030. Tesla's chief designer added over the weekend that a Roadster unveiling is scheduled "in a few weeks," which generated incremental interest ahead of the autonomous driving milestones that JPMorgan flagged as valuation catalysts.

Notable but quieter

Broadcom Inc. (NASDAQ: AVGO) recovered 2.82% to $396.60, clawing back a portion of the 13% drop it took after last week's guidance miss (see our June 4 recap for the full breakdown). Taiwan Semiconductor Manufacturing Co. (NYSE: TSM) added 2.80% to $426.80, with the Google-Intel foundry deal serving as a reminder of the competitive pressures in AI chip manufacturing. Baidu Inc. (NASDAQ: BIDU) slid 2.10% to $119.10; Morningstar recently downgraded Baidu's economic moat rating to None from Wide, citing structural erosion in its core search franchise, while a recent AI model release failed to reassure investors about the company's competitive positioning. CrowdStrike Holdings Inc. (NASDAQ: CRWD) and Palo Alto Networks Inc. (NASDAQ: PANW) each fell roughly 2%, as cybersecurity names gave back a portion of their strong May gains on light selling pressure. Salesforce Inc. (NASDAQ: CRM) dipped 1.68% to $182.55 and is now down 28% year-to-date, reflecting persistent pressure on enterprise software valuations.

What to watch this week

ASML's private technology conference runs June 9-10; Elon Musk's virtual fireside chat with CEO Christophe Fouquet on the Terafab semiconductor project is the most closely watched event, with potential to move ASML shares and the broader chip equipment sector. On June 17, Federal Reserve Chair Kevin Warsh presides over his first policy meeting, with the rate decision and any updated language on AI-driven capital spending potentially relevant to tech valuations. NVIDIA Corp. holds its annual general meeting on June 24, the same day Micron Technology is scheduled to report fiscal Q3 earnings; Micron's memory demand commentary has historically served as a leading indicator for the broader AI hardware supply chain.

Not investment advice.