AI Chip Surge and Industrial Giants Propel the Market

A resurgence in AI‑focused chips has sent SanDisk, Micron, and AMD soaring, while GM and 3M earnings reports are steering market flow.

Silicon Valley's Fresh Breeze: AI Chip Rally

■SanDisk shares rose 3.2% to $115.

■Micron stock jumped 4.5%, reaching $78.

■AMD gained 2.8%, edging toward $115.

■Weekly AI chip demand grew 12%, bolstering Q2 sector forecasts.

Industrial Titans' Earnings Sprint

■GM posted Q2 EPS of $1.15, beating forecasts of $1.07; revenue rose 3.1% to $42.3 B.

■3M reported net income of $5.3 B, a 6% quarterly increase; total revenue hit $35.1 B.

■Both firms raised dividends by 7%, lifting investor confidence.

Options Market Tension: VIX and Gamma Squeeze

■The VIX index sits at 21.4, up 0.8 points from last week, signaling higher volatility expectations.

■Large institutions' Gamma Squeeze tactics added $1.2 B in net open interest on SPX options.

■This pressure contributed to a 0.6% daily rise in the SPX.

Ege Kaan – Wall Street and U.S. Macro Strategy Lead: The AI chip rebound is energizing not only tech stocks but also overall risk appetite. The strong performances of SanDisk, Micron, and AMD, combined with a rising VIX, amplify Gamma Squeeze risk in the options market. Meanwhile, earnings surprises from GM and 3M redirect institutional capital, underpinning short‑term gains in the SPX. This confluence sets the stage for a 2‑3% SPX move over the next two weeks.