Semiconductor chip companies' stocks continued trading higher on Monday, continuing their rebound momentum from Thursday and Friday, having traded lower prior to those dates owing to the US Federal Reserve hiking the benchmark interest rate by 25 basis points.
The chip stocks remained resilient depsite China's DRAM chipmaker CXMT announcing on Sunday that its new fifth-generation memory chip platform has entered mass production. It is expected to make memory chip manufacturing cheaper and consume less power.
The gains followed a sharp rebound across semiconductor stocks on Thursday as investors shifted focus away from recent concerns over the pace of artificial intelligence spending and towards tight chip supply and continued data-centre demand.
The markets traded lower on Wednesday, Sept. 16 after the benchmark interest rate increased to 3.75% to 4% from 3.50% to 3.75%.
Shares of brands such as SK Hynix, Intel, Nvidia, Micron, AMD and SanDisk were in the green during early trade climbing more than 8%.
Shares of Intel Corp. were 8.52% higher to $117.85 after US stock markets commenced trading.
Advanced Micro Devices Inc. (AMD) stock price increased by 8.42% to $606.93 shortly after the opening bell. Share price of Micron Technology Inc was at an uptick of 3.70% to $1,053.37 prior to markets beginning their trading activity.
SK Hynix saw its futures traded 0.87% higher to $189.13. While SanDisk Corp. was trading at a downturn of 0.25% to $1,787.36. Nvidia's shares were up 0.94% to $224.37 before the stock market opened.
Intel's shares traded higher following the news earlier in the week of CEO Lip-Bu Tan stating that the company is currently able to meet only about half of customer demand for its CPUs.
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Speaking at the AI Infrastructure Summit in Santa Clara earlier this week, Tan also warned that the global memory shortage could worsen next year.
The comments lifted memory stocks on Friday, as investors assessed whether constrained supply could support pricing and margins for chipmakers such as Micron.
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