AI chip stocks rebound on multiyear deal flow as analysts lift forecasts

The sell-off in AI chip stocks looked alarming while it lasted. The recovery, it turns out, was waiting on a fairly simple piece of evidence: customers were signing contracts that stretched years into the future, and that is not how companies behave when they expect demand to collapse. The contract evidence that moved markets Micron anchored the optimism with a striking figure: $22 billion in multiyear customer commitments for memory chips, secured as of mid-September 2026. Those are not handshake deals. Many are structured as take-or-pay agreements, meaning customers owe payment whether or not they ultimately take delivery. Broadcom added its own data point, announcing an extended partnership with Meta running through 2029. The company’s CEO described current AI demand as exceptionally strong, projecting AI semiconductor revenue of $115 billion for fiscal 2027 and $230 billion for fiscal 2028. Amazon reinforced that picture by raising its full-year capital expenditure forecast to $220 billion. Piper Sandler moved quickly on the data, initiating Overweight ratings on Nvidia, AMD, and Broadcom with price targets of $300, $600, and $460 respectively. Bank of America went further, rai...