What happened: Micron Technology (MU) stock jumped 8% on Thursday, joining a broader rally across memory and AI-related stocks. Sandisk (SNDK), Western Digital (WDC), Marvell (MRVL), Broadcom (AVGO), Intel (INTC), and AMD (AMD) also traded higher.

What's behind the move: The jump comes after reports that Asia's SK Hynix (000660.KS) is oversubscribed in its US IPO, signaling that institutional investors remain bullish on the AI memory trade.

On Thursday, Micron also unveiled plans to invest up to $3 billion to bolster the US semiconductor supply chain, with part of the investment supporting GlobalWafers' silicon wafer manufacturing operations in Texas.

Micron and GlobalWafers plan to enter a 10-year supply agreement, giving Micron long-term access to raw silicon wafer capacity.

What else you need to know: The artificial intelligence trade has been a major driver of earnings growth this year, helping propel the broader stock market higher.

A critical shortage of high-bandwidth memory (HBM) used in AI data centers has fueled sharp gains in shares of Micron, Samsung Electronics, and SK Hynix, with Wall Street expecting supply constraints to persist through 2027.

SK Hynix will make its US public trading debut on the Nasdaq on Friday. Its initial public offering consists of 177.9 million American depositary shares (ADS), each representing one-tenth of a share of the company's common stock, that will trade under the ticker symbol SKHY.

Ines Ferre is a Senior Business Reporter for Yahoo Finance covering the US stock market, publicly traded companies, and commodities.

Click here for in-depth analysis of the latest stock market news and events moving stock prices

Read the latest financial and business news from Yahoo Finance