03:24 PM EST, 11/05/2025 (MT Newswires) -- Major technology stocks were advancing Wednesday following a rout in the previous session that was triggered by potential concerns around stretched valuations of artificial intelligence-related names.

Investors have bet big on AI players, driving tech valuations higher, though some analysts are concerned that the AI spending boom may be a bubble.

"Over the past several weeks, the (tech) sector, and particularly stocks tied to (AI), have entered a period of heightened turbulence," Charu Chanana, chief investment strategist at Saxo Bank, said in a report Wednesday. "Earnings have generally held up, but investors are questioning whether growth can justify lofty valuations, especially amid renewed macro and policy uncertainty."

Micron Technology ( MU ) shares were up 9.2% in Wednesday late-afternoon trade, while Advanced Micro Devices ( AMD ) and Broadcom ( AVGO ) rose more than 2.5% each.

On Tuesday, Micron slumped 7.1%, AMD shed 3.7%, and Broadcom ( AVGO ) fell 2.9%. Palantir Technologies ( PLTR ) and Nvidia ( NVDA ) also closed lower after a filing showed that investor Michael Burry placed bearish bets on the two tech stocks.

Late Tuesday, AMD reported third-quarter results that exceeded Wall Street's estimates as the chipmaker continued to benefit from strong demand for its processors and AI chips. Chief Executive Lisa Su painted a bright demand outlook for cloud computing services.

"We expect cloud demand to remain very strong as hyperscalers are significantly increasing their general purpose compute capacity as they scale their AI workloads," Su told analysts, according to a FactSet transcript. "Many customers are now planning substantially larger (central processing unit) build-outs over the coming quarters to support increased demands from AI, serving as a powerful new catalyst for our server business."

Shares of Nvidia ( NVDA ), Alphabet (GOOG, GOOGL), Meta Platforms ( META ) , and Oracle (ORCL) were also showing gains intraday Wednesday, though Palantir ( PLTR ) was still down.

The recent pullback in tech stocks seems to be "valuation compression rather than capitulation," though further volatility can't be ruled out, Chanana said Wednesday.

"This looks more like a healthy reset than a structural breakdown, but the next phase will depend on new catalysts such as a revival in AI spending, stabilizing yields, and a softer dollar," Chanana wrote.

Price: 239.15, Change: +21.12, Percent Change: +9.69