After taking a beating for the past week, chip stocks climbed Tuesday morning as part of a broader market rally.
Nvidia, Broadcom, and Intel lead the way as chip makers and AI stocks try to shake off a rough stretch
After taking a beating for the past week, chip stocks climbed Tuesday morning as part of a broader market rally.
Meanwhile, other leading chip makers, including Broadcom $AVGO (AVGO), Intel $INTC (INTC), Micron $MU Technology (MU), Lam Research $LRCX (LRCX), Applied Materials $AMAT (AMAT), Samsung, and Cisco $CSCO (CSCO) were also up Tuesday.
Nvidia’s slide accelerated last week after HSBC analyst Frank Lee downgraded the stock from a “buy” to a “hold,” noting that Nvidia’s earnings and guidance beats in the last three quarters have been shrinking due to “increasing market focus on Nvidia’s earnings as well ongoing uncertainty over its Blackwell supply chain ramp-up.”
Meanwhile, other chip stocks were getting better reviews from analysts. For instance, GuruFocus research shows that Broadcom has received a “Strong Buy” rating from nearly 88% of brokerage analysts.
Trump’s trade war had sunk chip stocks as fears over slowing demand and high prices took hold. However, semiconductors are exempt from new tariff rates imposed on a slate of countries, which should insulate chip makers from some tariff turmoil.
Also of concern: Data centers planned by major IT companies have been delayed or shelved as uncertainty surrounding ROI increases.
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