Chip stocks are soaring on Thursday as they rebound from a days-long rout, boosted by Microsoft's positive results. Micron and Sandisk, which plunged over the past days amid the broader decline, also saw double-digit gains. Both figures topped analyst expectations, which had called for revenue of roughly $87.6 billion and earnings of $4.24 per share. Analysts will continue watching whether those investments generate sustained growth in Azure, Microsoft 365 Copilot and other AI products. 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.