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Takeaways
- Advanced Micro Devices (AMD), Nvidia and other chip stocks rose on Monday.
- The move to higher prices follows reports that the White House may not announce any tariffs on the semiconductor industry.
- Chip stocks have had a rough start to 2025 amid tariff worries, as well as concerns about companies' commitment to investing in AI infrastructure.
Following reports that the Trump Administration may not target semiconductors as part of the tariffs scheduled take effect April 2, Advanced Micro Devices(AMD), Nvidia(NVDA) and other chip stocks rallied.
AMD shares were up nearly 8% in recent trading, making it one of the best-performing stocks in the S&P 500. Nvidia shares rose close to 4% while NXP Semiconductors added 5%. Micron Technology shares (MU) and Qualcomm shares (QCOM) were also higher. The PHLX Semiconductor Sector Index SOX rose over 3%.
The Wall Street Journal reported over the weekend that tariffs targeting specific industries such as automobiles and pharmaceuticals, as well semiconductors, are unlikely to be announced by April 2. The Wall Street Journal reported that the announcement of tariffs targeting specific sectors such as automobiles, pharmaceuticals, and semiconductors is unlikely to take place on April 2.
Chip Stocks have had a rough start to 2025
In recent weeks, fears that semiconductors may be subject to tariffs as high as 25% or even more, according to Trump’s previous comments, has weighed on chip stock prices, with the SOX Index down 5% so far for 2025. Investors have also been concerned that further export curbs may affect chip sales.
The Chinese AI startup DeepSeek, which has developed a cheaper model, has also raised concern about how much Big Tech will invest in AI Infrastructure. Amazon, Microsoft, and Meta Platforms have all announced plans to increase their spending.
