US chip stocks rebound after their largest weekly decline in months
Reuters, October 19 - On Monday, U.S. chip stocks rebounded slightly after sharp declines last week, as lower Treasury yields and falling crude oil prices provided support to the recently battered artificial intelligence sector.
The iShares Semiconductor ETF (SOXX.O) — the largest ETF tracking U.S. chip-related companies by assets under management — rose 3.6% in premarket trading on Monday after dropping nearly 12% last week.
Details are as follows:
Intel INTC.O led the gainers, rising 4.2% today after plunging over 14% last week
JPMorgan upgraded Intel's rating from "underweight" to "neutral," citing self-driven AI demand and chip shortages as drivers boosting future earnings expectations
Chip giant NVIDIA (NVDA.O) rose 1.9%, AMD (AMD.O) climbed 3.5%, Marvell Technology (MRVL.O) increased by 4.7%, and Broadcom (AVGO.O) rose 3.5%
Memory chip maker Micron Technology (MU.O) was up 3.6% after falling 14.6% last week
Data storage company SanDisk (SNDK.O) gained 4.3%, Western Digital (WDC.O) rose 3.1%, and Seagate Technology (STX.O) was up 3.4%
Analog chip makers also saw gains: Texas Instruments TXN.O climbed 2.4%, Analog Devices ADI.O rose 2.9%, and ON Semiconductor ON.O was up 3%
The Philadelphia Semiconductor Index .SOX declined 11.4% last week, marking its largest weekly drop since March 2025
As of the close of the previous trading day, the index had fallen for eight consecutive trading days, erasing around $2 trillion in market value during this selloff
Last week, elevated inflation increased the likelihood of Fed rate hikes, coupled with concerns over whether large AI investments would yield returns, jointly dragging down tech stocks
Despite the recent decline, the Philadelphia Semiconductor Index is still up 57.2% year to date
Earlier this year, chip stocks had rebounded as investors saw the sector as one of the biggest winners of the AI boom
Lam Research (LRCX.O), Texas Instruments, and Western Digital will release quarterly earnings this week
Mega-cap tech stocks Meta Platforms META.O, Tesla TSLA.O, and SpaceX SPCX.O will also report earnings this week
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