Chips stocks such as Sandisk, SK Hynix, Intel, Micron, AMD Nvidia and Broadcom rebounded, surging up to 8% during the trading session on Tuesday, August 4 as investors stay optimistic in the semiconductor and artificial intelligence space.
The rally in these stocks was led by Sandisk, surging as much as 8.2% to $1,394, followed by Intel shares, rising 7.31% to $97.65, SK Hynix, up 6.69% to $152.27, AMD jumped 6.08% to $514.09, while Micron shares 5.42% up at $874.5. Additonally, Nvidia shares traded 2.43% higher at $211.66.
Chip stocks have remained volatile since last few trading sessions as profit-taking continues after massive sell-offs, amid concerns over heavy artificial intelligence spending by big tech companies, and pressures from new domestic chip production and memory IPOs in China, according to reports.
The gains also come amid improving broader market sentiment, despite geopolitical uncertainties continue, with Iran denying any direct talks with US to end the Middle East conflict, while President Donald Trump, said his administration had made what he described as a "last chance" offer to Iran and expressed confidence that the Strait of Hormuz could soon reopen fully. The S&P 500 touched a new all-time intraday high on Tuesday. The market index rose 0.5%, while the Nasdaq Composite advanced 0.9%. The Dow Jones Industrial Average was up 1.4%.
Investors are also focusing on AMD's quarterly results due after the market close, with the chipmaker's outlook expected to offer further clues on AI demand.
On Monday, stocks such as SK Hynix, Intel, Micron and Broadcom tanked over 5% as the sell-off spree from investors deepened after a notable jump in the previous week.
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