- US semiconductor stocks rebounded strongly with Nvidia, AMD, Micron, and Intel leading gains
- AMD shares surged 9.35%, Intel rose 6.58%, Micron climbed 5.83%, Nvidia gained 3.72% on Friday
- Nasdaq and S&P 500 rose 1.6% and 1% respectively after Thursday's sharp tech selloff
US semiconductor stocks staged a strong recovery on Friday, with Nvidia, Advanced Micro Devices (AMD), Micron Technology and Intel leading the rebound as investors stepped in to buy beaten-down technology shares following Wall Street's worst tech rout in 19 months.
AMD shares surged 9.35% to $442.21, recovering from a steep 17.3% decline in the previous session. Intel climbed 6.58% to $55.69 after falling 10.3% on Thursday. Micron Technology advanced 5.83% to $694.63, while Nvidia gained 3.72% to $188.36, according to the latest market data.
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The recovery extended across the semiconductor space. Qualcomm and Marvell Technology also moved higher, while Broadcom gained ground after suffering heavy losses in the previous trading session.
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The buying came a day after a brutal selloff wiped out billions of dollars in market value from some of the world's biggest technology companies. The Nasdaq Composite had plunged 5.46% on Thursday, entering correction territory after closing more than 10% below its recent high. The S&P 500 dropped 4.4%, while the Dow Jones Industrial Average shed more than 1,800 points.
According to CNBC, the Nasdaq was up around 1.6% on Friday, while the S&P 500 gained 1%. The Dow traded close to the flatline.
Thursday's selloff was largely driven by concerns that Democratic victories in the US midterm elections could translate into tougher artificial intelligence regulations and delays in data-centre expansion. Several Democratic candidates had campaigned on tighter oversight of AI infrastructure, raising questions about the industry's ambitious growth plans.
The Philadelphia Semiconductor Index plunged 12% in the previous session, reflecting the extent of the pressure on chipmakers. The seven largest US technology companies also lost around $1 trillion in combined market capitalisation on Thursday, CNBC reported.
However, analysts cautioned against interpreting Friday's gains as a sign that the turbulence is over.
MarketWatch quoted StoneX analyst Yi Fu Lee as describing the previous session's sharp correction as an opportunity for investors to pick up AI-linked semiconductor stocks. Stifel analyst Brian Chin, meanwhile, characterised the rebound as a volatility-driven reaction, warning that uncertainty surrounding future data-centre spending could keep markets unsettled.
ALSO READ: Big Tech Loses $1 Trillion In A Day As AI Concerns Rattle Wall Street. Can Stocks Rebound Today?
Investors also drew some comfort from stronger-than-expected US employment data. Nonfarm payrolls increased by 165,000 in October, significantly above economists' expectations of 59,000. The unemployment rate slipped to 4.1% from 4.2%.
The stronger jobs numbers offered reassurance about the resilience of the US economy, although they also fuelled expectations of tighter monetary policy. Traders increased bets on a possible Federal Reserve rate hike in December.
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