The artificial-intelligence trade was making a comeback on Tuesday as Wall Street shrugged off fears that a slew of cheap Chinese chatbots would put an end to the chip and memory spending boom.

Futures tracking the tech-heavy Nasdaq 100 jumped 1.2% as some of the market's best-loved AI stocks rebounded.

Memory card maker Sandisk was the S&P 500's best performer in premarket trading, jumping 7.7%.

Chips and networking company Marvell added 6.2%, memory-chip maker Micron rose 6.5%, and chip manufacturer Intel gained 5.4% ahead of the opening bell.

Applied Materials, Coherent, Corning, KLA Corp., Lam Research, Lumentum, Seagate, and Western Digital were among the other AI stocks rising on Tuesday.

These stocks were also making moves in premarket trading:

Cracker Barrel Old Country Store was up 2.7% after the restaurant chain said it expects to meet or exceed its full-year revenue guidance after selling its Maple Street Biscuit business.

D.R. Horton was flat after the largest U.S. home builder's third-quarter earnings and revenue beat analysts' expectations.

General Motors climbed 0.7% after the auto maker reported better-than-expected second-quarter earnings and raised its full-year guidance.

Write to George Glover at george.glover@dowjones.com

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July 21, 2026 07:35 ET (11:35 GMT)

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