Chip stocks rose Tuesday, extending Monday’s gains following a rout sparked by President Donald Trump’s sweeping tariffs and China’s retaliatory measures.
Nvidia’s (NVDA) stock price surged over 6% in early trading. Broadcom (AVGO), Intel (INTC), Micron Technology (MU), Lam Research (LRCX), Applied Materials (AMAT), and other semiconductor stocks were also higher.
Shares of Taiwan Semiconductor Manufacturing Company (TSM), the world’s largest chip manufacturer, climbed 2%. Trump’s “reciprocal” tariffs on imports from Taiwan of 32% are among the highest in Asia.
Until Monday, chip stocks had taken a hit even as they were excluded from the levies as investors worried that a global downturn would hurt demand.
The chip stocks are gaining against a backdrop of a global stock rebound Tuesday, as investors weigh the latest tit-for-tat tariff pledges by the U.S. and China. China has said it would hit back further if Trump increases U.S. import tariffs. (Read Investopedia’s live coverage of today’s market action here.)
UPDATE—April 8, 2025: This article has been updated since it was first published to reflect more recent share price values.
:max_bytes(150000):strip_icc()/GettyImages-2205758538-56e855120cd64a6bb97c4fe8a266d5b5.jpg?w=1200&resize=1200,0&ssl=1&description=Chip+Stocks+Jump%2C+Extending+Gains+After+Recent+Sell-Off){kind=link}