Chip stocks surged on Friday to their highest level in three months. The Philadelphia semiconductor index, known as the SOX, jumped as much as 3.4 percent before closing up 2.4 percent.

Teradyne led the rally. The semiconductor equipment maker surged 8 percent to close at 449.04 dollars. Earlier this week it launched the Magnum E2, a next-generation memory test system for advanced AI chips.

Macom Technology rose 6.6 percent to 321.60. Chip designer Arm climbed 5.2 percent to 307.49. AI chip giants AMD and Nvidia both hit all-time highs during the session.

ON Semiconductor added 6 percent to 84.89 after raising its bid to buy Synaptics. Other breakouts included Advantest, ASE Technology and United Microelectronics.

The rally caps a strong week for semiconductors. AI spending keeps driving demand for chips and the equipment used to test them. Analysts say the sector’s momentum reflects real earnings growth, not just hype.

The SOX tracks the 30 largest US-traded chip companies. It is now at its best level since July.