Chip stocks jumped on Thursday. Broadcom gained 6%; SOXL, ASML up more than 3%; Marvell, TSMC, Micron up more than 2%.

Meta talked up the use of its in-house chips, which it has developed with Broadcom, as potential replacements for some servers currently powered by graphics-processing units made by Nvidia.

ASML booked more than twice as many orders as analysts expected in the fourth quarter, as the artificial intelligence boom drove demand for its chipmaking machines.

The Dutch company reported order bookings of €7.09 billion ($7.4 billion) in the fourth quarter, it said in a statement on Wednesday. That compares with an average estimate of €3.53 billion by analysts surveyed by Bloomberg.

“AI is the clear driver,” Chief Executive Officer Christophe Fouquet said. “We really believe that AI is creating a shift in the market and we have seen customers benefiting from it very strongly.”

Morgan Stanley reiterates Nvidia and Broadcom as overweight and Marvell and Micron as equal weight.

The firm lowered its price target on Nvidia to $152 per share from $166.The firm also went to $246 per share from $265 on Broadcom. Additionally, the firm lowered its price target on Marvell to $113 per share from $120 and cut Micron to $91 per share from $98.

“The DeepSeek release highlights evolutionary innovations in AI, some of which may be deflationary. That said, the stock market reaction is probably more important than the cause, and could bring further export controls or reduce spending enthusiasm; trimming PTs but remain positive.”