* Blowout earnings help lift mood on AI

* Yen near 40-year lows as intervention risks loom

* Oil prices at pre-war levels as tankers pass through

Hormuz

(New throughout, updates with U.S. markets and adds analyst

comment)

By Chibuike Oguh

NEW YORK, June 25 (Reuters) - Global stocks rose on Thursday

as strong earnings from chipmakers lifted sentiment, while the

dollar hovered near a one-year high, with investors remaining

wary about stretched valuations.

The benchmark S&P 500 and the Nasdaq were advancing on Wall

Street, led by industrials, healthcare and materials stocks.

Micron was up 10% after the memory chipmaker's solid

forecast helped extend its AI-driven ascent.

Qualcomm ( QCOM ) rose 4% after reporting that it expects $15

billion a year in sales from its data center business by 2029.

The Nasdaq was down, however, pulled lower by choppy trading

among most megacap technology stocks. Apple ( AAPL ) was down

5.3%.

The Dow Jones Industrial Average rose 1%, the S&P 500

rose 0.21%, and the Nasdaq Composite fell 0.46%.

AI VALUATIONS AND INTEREST RATES DRIVE SENTIMENT

Investor concern that valuations of AI-related companies

have become stretched after years of gains has weighed on

markets in recent days, leading to volatile sessions.

Furthermore, markets are pricing in higher interest rates from

the U.S. Federal Reserve and other central banks.

"If you took the tech sector alone against the S&P 500

excluding technology going back to 2000, we are about 2.8

standard deviations away from the average," said Marc Dizard,

chief investment officer at Huntington Bank.

"When you get the magnitude of that move, it's not

surprising to us that we would get a little bit of a pause, some

consolidation and rebalancing where investors are taking profits

off the table."

In Europe, the broad STOXX 600 rose 0.92%. MSCI's

gauge of stocks across the globe rose 0.42%.

"Technology is a long-duration asset as the story plays out,

not necessarily in the next six months. And when you have the

Fed come out with a more hawkish tone, long-duration assets are

going to sell off in that time period," Dizard said.

U.S. inflation data on Thursday broke 4% annually for the first

time in three years as the Middle East conflict boosted energy

prices, but the monthly reading was slightly below expectations,

helping to push yields lower.

The yield on benchmark U.S. 10-year notes

fell 1.37 basis points to 4.386%. The 2-year note

yield fell 2.64 basis points to 4.111%.

OIL BACK TO PRE-WAR LEVELS

Oil prices edged higher but were still near levels last seen

before the start of the U.S.-Israeli war on Iran, as

expectations of rising supply from the Middle East outweighed

demand concerns.

Brent crude futures were up 1% to $74.49 a barrel.

In currencies, the dollar fell against major peers but was

still near its highest level in a year.

The euro was last at $1.1388, a whisker above Wednesday's

13-month low, while the Japanese yen was near its lowest

in 40 years against the dollar, with more intervention widely

expected from Tokyo after the last bout around May failed to

stem the currency's decline.

The yen strengthened 0.1% against the greenback

to 161.63 per dollar.

The dollar index, which measures the greenback against a

basket of currencies including the yen and the euro,

fell 0.29% to 101.30.

Gold rose as the U.S. dollar fell. Spot gold

rose 0.68% to $4,027.67 an ounce.