U.S. stock market AI concept surges in night trading: ARM jumps nearly 9%, new chip division sets $15 billion five-year target; optical communication stocks continue to rise collectively
Event Background
According to the Gold Form APP, on Wednesday (March 25, 2026) after the US stock market closed and during the night trading session, AI-related concept stocks collectively surged. ARM Holdings soared nearly 9% in after-hours trading due to the announcement that its new chip division is expected to reach an annual sales revenue of $15 billion within five years; the optical communications sector continued to strengthen with AAOI up over 5%, Corning and Coherent both up nearly 4%, and Lumentum up over 3%. Among the leading tech stocks, Micron Technology increased by more than 2%, while Nvidia, Tesla, and Google all gained more than 1%.
This nighttime rebound reflects the market’s continued optimism regarding AI infrastructure and data center demand, and the signal of ARM’s strategic transformation further boosted sector sentiment.
ARM's New Chip Plan
ARM's after-hours increase of nearly 9% was mainly driven by the company's announcement of its first self-designed data center CPU, with Meta as its initial customer. This new chip division aims at the strong demand for high-efficiency processors in the AI era, and ARM expects this business to deliver $15 billion in annual sales within five years.
This move marks ARM's significant transition from the traditional IP licensing model to self-developed chip production. The company has achieved revenues of over $1 billion for four consecutive quarters and expects strong growth this fiscal year. Management emphasized that in the next few years, the data center business will become ARM’s largest revenue source, surpassing the traditional mobile sector.
ARM's after-hours stock price surged, indicating that investors highly recognize its strategic position within the AI chip ecosystem.
Continued Rise in Optical Communication Stocks
The optical communications sector continued to be strong in after-hours trading, benefiting from the ongoing explosive demand for high-speed optical modules in AI data centers. Applied Optoelectronics (AAOI) rose more than 5%, Corning, Coherent nearly 4%, and Lumentum over 3%.
The core products of these companies include high-speed optical transceivers, laser devices, and optical fiber components, directly serving the interconnect demands of AI servers for Nvidia and others. With expectations for stable AI capital expenditures recently, and the persistent tight supply chain in optical communications, capital continues to flow into these related stocks.
Performance of Leading Tech Stocks
Other major tech stocks rallied in tandem: Micron Technology (MU) was up more than 2% after hours, continuing to benefit from the tight supply of HBM high-bandwidth memory; Nvidia (NVDA), Tesla (TSLA), and Google (GOOG) all rose more than 1%, reflecting renewed market confidence in AI hardware, autonomous driving, and data center infrastructure.
| ARM | Surged nearly 9% | New chip division's $15 billion target in five years |
| AAOI | Up over 5% | Strong AI optical module demand |
| Corning / Coherent | Up nearly 4% | Optical communications sector collectively rallying |
| Lumentum | Up over 3% | High-speed optical device demand |
| Micron Technology | Up over 2% | Strong HBM memory sales |
| Nvidia / Tesla / Google | Up over 1% | AI and data center themes |
Industry Outlook
The collective rebound of AI concept stocks in after-hours trading highlights the market’s recognition of long-term AI growth potential. ARM’s transition from IP licensing to self-developed chips may open up new revenue streams, while the optical communications and memory sectors benefit directly from data center capital expenditure cycles.
Although bitcoin and the crypto market show some volatility, AI hardware demand remains relatively independent and robust. A gradually clarifying regulatory environment, deeper institutional participation, and faster technological iterations will continue to support the earnings growth of listed companies in this sector.
From an objective perspective, ARM led the US after-hours market, with its new chip plan boosting confidence, while optical communication and leading tech stocks rose together, reflecting the repositioning of capital in the AI industry chain after a pullback. In the short term, the sector remains affected by macro sentiment and earnings season cadence. In the medium and long term, as AI infrastructure expands, there’s substantial space for quality companies’ valuation recovery and earnings realization.
Frequently Asked Questions
1. Why did ARM surge nearly 9% after hours?
ARM announced the launch of its first self-designed data center CPU and expects the new chip division to achieve $15 billion in annual sales within five years. This strategic shift has been highly recognized by the market, directly driving the strong rally in its after-hours stock price.2. What is the core significance of ARM's new chip plan?
ARM is shifting from traditional IP licensing to self-developed chip production, cooperating with giants like Meta and targeting high-efficiency CPU demand in AI data centers. The data center business is expected to become the company’s largest revenue source, significantly enhancing its long-term growth prospects.3. Why did optical communication stocks collectively rise after hours?
AAOI rose over 5%, Corning and Coherent nearly 4%, Lumentum over 3%, mainly driven by the sustained demand for high-speed optical modules and laser devices in AI data centers. Supply chain tightness and expectations for capital expenditures support the sector’s performance.4. How did leading tech stocks such as Micron Technology and Nvidia perform after hours?
Micron Technology was up more than 2%, while Nvidia, Tesla, and Google all gained more than 1%. Micron benefited from strong HBM memory sales and the others rallied in line with the AI infrastructure theme.5. What factors should be considered for short-term AI concept stock investments?
It is important to monitor the macro interest rate environment, the actual implementation pace of AI capital expenditures, earnings season performance, and geopolitical and regulatory developments. While ARM’s new plan is a long-term positive, the results will depend on market competition and technological validation. Investors should take both valuation and risk preference into account.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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