Neocloud, Memory and Optical Stocks Surge: Is the AI Trade Back?

U.S. AI infrastructure stocks staged a broad-based rebound on Thursday. After several sessions of heavy selling, capital flowed back into some of the market's hardest-hit AI infrastructure names, including Neocloud, crypto miners, memory, optical networking, and networking chip stocks.

Memory stocks led the rally. $Micron Technology(MU)$   surged more than 13% intraday, while $SK hynix(SKHY)$   climbed over 12%. The biggest catalyst came from Samsung Electronics, which reported record earnings and said supply constraints for high-end memory products such as HBM are expected to persist through 2028, reinforcing confidence that AI memory demand remains robust.

Neocloud stocks also rebounded sharply. $CoreWeave (CRWV.US)$ and $NEBIUS (NBIS.US)$ rallied strongly as investors returned to AI cloud infrastructure names that had been under heavy pressure. Meanwhile, AI data center–linked crypto miners, including $IREN Ltd (IREN.US)$ , $Hut 8 (HUT.US)$, $Bitdeer Technologies Group (BTDR.US)$, and $Cipher Digital (CIFR.US)$, also posted strong gains as investors reassessed the long-term value of GPU computing assets.

Optical networking and networking infrastructure stocks joined the rally, with $Corning (GLW.US)$, $Credo Technology (CRDO.US)$, $Astera Labs (ALAB.US)$, $Marvell Technology (MRVL.US)$, $Coherent (COHR.US)$, and $Lumentum (LITE.US)$ all posting solid gains. Many of the sector's biggest losers over the past month delivered the strongest rebounds.

The key driver behind today's rally is that earnings continue to reinforce the view that AI infrastructure investment remains intact. $Alphabet-C (GOOG.US)$ raised its capital expenditure outlook and expects spending to increase further in 2027. $Microsoft (MSFT.US)$ reported continued strength in Azure, while investors increasingly recognize that its lower CapEx outlook largely reflects accounting changes rather than reduced AI investment. $Meta Platforms (META.US)$ , meanwhile, raised the lower end of its full-year capital expenditure guidance to $130 billion and reiterated that AI compute capacity will remain constrained for years. Samsung's expectation that HBM supply shortages will last through 2028 further strengthens the case that AI infrastructure demand remains robust.

After the U.S. market closes today, Amazon and Apple will report earnings. Investors will focus not only on AWS growth but, more importantly, on whether $Amazon (AMZN.US)$ continues to signal strong AI demand, expanding data center investment, and sustained AI capital spending. If Amazon echoes the messages from Alphabet, Microsoft, and Meta, all four hyperscalers will have reinforced that the AI infrastructure investment cycle remains firmly in place. Apple's earnings, meanwhile, will provide another key read on AI adoption, Apple Intelligence, and end-market demand.

Following July's sharp correction, many AI infrastructure leaders remain 30% to 60% below their recent highs. Today's rally appears to reflect a market repricing of the AI investment cycle, while earnings from Amazon and Apple after today's close could become the key test of whether this rebound has further room to run.

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