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Chip stocks are soaring on Thursday as they rebound from a days-long rout. Reuters

Chip stocks are soaring on Thursday as they rebound from a days-long rout, boosted by Microsoft's positive results.

CNBC noted that Lam Research jumped 20% and is on track for its best day in more than 25 years after posting strong earnings and positive guidance.

Samsung's shares also jumped after the company warned the memory crunch will continue for years. Micron and Sandisk, which plunged over the past days amid the broader decline, also saw double-digit gains.

The sector saw a $1 trillion wipeout over the past days as concerns about spending levels mounted. The broader market is also rebounding on Thursday, with the Nasdaq Composite climbing more than 2%.

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Microsoft jumped more than 14% at the same time after impressing Wall Street with stronger-than-expected fiscal fourth-quarter results, fueled by continued momentum in its cloud computing and AI businesses.

The software giant reported revenue of $90 billion, an 18% increase from a year earlier, while adjusted earnings reached $4.81 per share. Both figures topped analyst expectations, which had called for revenue of roughly $87.6 billion and earnings of $4.24 per share.

Azure, Microsoft's cloud platform and a key barometer of enterprise AI demand, posted 43% growth, outperforming forecasts and reinforcing investor confidence that businesses continue to expand spending on AI-powered cloud services.

Investors remain focused on Microsoft's future capital spending. The company is expected to invest approximately $145 billion during fiscal 2026 as it races to build the computing infrastructure needed to support AI services. Analysts will continue watching whether those investments generate sustained growth in Azure, Microsoft 365 Copilot and other AI products.

Meta stands on the other end of the spectrum. Its stock is plummeting more than 9% after raising the lower end of its 2026 capital expenditure forecast to between $130 billion and $145 billion, signaling that spending on AI infrastructure remains a top priority despite mounting investor concerns over the pace of investment.

The guidance increase came alongside another quarter of strong revenue growth, but shrinking free cash flow renewed questions about how quickly those investments can begin producing meaningful financial returns.

Analysts said the company's investment profile increasingly resembles that of the world's largest hyperscale cloud providers, while its revenue base remains overwhelmingly tied to digital advertising, Reuters detailed.