Shares of Allegro MicroSystems (NASDAQ:ALGM) led a broad rally in chip stocks Thursday after the company's fourth?quarter results topped forecasts.

ALGM soared more than 12%, buoying equipment names as well. Veeco Instruments (NASDAQ:VECO) climbed about 8% after its first?quarter revenue and earnings beat analyst expectations.

Warning! GuruFocus has detected 5 Warning Signs with ALGM.

MKS Instruments (NASDAQ:MKSI) jumped 6% following non?GAAP earnings of $1.71 per share and revenue of $936 million, both above consensus. MACOM Technology Solutions (NASDAQ:MTSI) also surged roughly 6% after its second?quarter results and outlook outpaced estimates.

Major chip makers joined the advance. Intel (NASDAQ:INTC) and Marvell Technology (NASDAQ:MRVL) each rose around 4%, while Analog Devices (ADI), Lattice Semiconductor (NASDAQ:LSCC) and GlobalFoundries (NASDAQ:GFS) added about 2%. Taiwan Semiconductor Manufacturing (NYSE:TSM) and Texas Instruments (NASDAQ:TXN) gained about 1% apiece.

In the AI segment, NVIDIA (NASDAQ:NVDA) edged up 1% and Advanced Micro Devices (NASDAQ:AMD) jumped nearly 4%. Broadcom (NASDAQ:AVGO) and Qualcomm (NASDAQ:QCOM) each rose about 2%.

The sector?wide strength reflects upbeat guidance and robust demand across semiconductors, sustaining a tech?led market rally.

This article first appeared on GuruFocus.

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