Semiconductor Stocks Rally on AI Demand and UBS Call; Micron Surges 17%

On May 26, 2026, semiconductor stocks surged in afternoon trading, ignited by a UBS call that Micron Technology (MU) has over 100% upside, signaling a multi-year AI buildout. Progress in Iran-US peace talks and cooling Treasury yields amplified the rally. Micron shares jumped 17.16%, while Advanced Micro Devices (AMD) gained 5.68%, Broadcom (AVGO) 4.84%, and Intel (INTC) 1.72%. UBS’s validation of long-term supply contracts reinforced the structural demand for GPUs, CPUs, custom silicon, and memory, with chipmakers remaining supply-constrained. Adding momentum, analysts pointed to a cyclical recovery in industrial and automotive markets, with Bank of America noting that these end markets "finally turned the corner." Reports of Texas Instruments planning price increases in 2026 suggested strengthening pricing power and improved sector profitability. Allegro MicroSystems (ALGM) rose, trading near its 52-week high of $51.37, up 88.2% year-to-date.