Jan 6 Reuters Shares of chipmakers jumped on Monday as Microsoft39;s plan to invest 80 billion in AIenabled data centers in fiscal 2025 spurred bets that semiconductor demand would remain strong.

Micron was the biggest gainer among semiconductor stocks with a 10.6 rise, while chipmaking equipment companies like Applied Materials, Lam Research and KLA Corp rose between 5.1 and 5.5.

The Philadelphia Semiconductor Index hit its highest since midOctober and was last up 3.9. The index jumped over 19 in 2024.

The techheavy Nasdaq led Wall Street39;s main indexes higher, while semiconductor stocks in Europe and South Korea also surged earlier in the day.

Citigroup said Microsoft39;s spending plan although in line with analysts39; estimates was a modest positive update as it removed the risk of a drop in capital expenditure.

AI data centers are very chip hungry, that39;s why you have people running towards the chip sector right now, said Michael Matousek, head trader at U.S. Global Investors.

Contract manufacturer Foxconn39;s record revenue for the fourth quarter on the back of strong demand for AI servers also added to the overall euphoria in the chip sector.

Nvidia, a Foxconn customer, added 5.1. The AI bellwether39;s CEO, Jensen Huang, is set to deliver a keynote speech at the CES trade show later in the day. AI server maker Super Micro Computer jumped 10.3.

Nvidia39;s quarterly results in November signaled a slowdown in revenue growth but those worries were brushed…