Chip Stocks Soar as Nvidia, AMD Power Sector Rebound

​The U.S.–China trade truce is already sending shockwaves through tech—and nowhere is that more evident than in the semiconductor sector. On Monday, chip stocks roared back to life, pushing the PHLX Semiconductor Index to its highest close since February, up 7% for the day.

Leading the charge were Nvidia and AMD, with gains of 5.4% and 5.1%, respectively. Broadcom surged 6.4%, Qualcomm rose nearly 5%, and Lattice Semiconductor jumped an eye-popping 12.8%. Even Intel, often slower to rally, gained 3.5%.

The rally was triggered by the U.S.–China agreement to dramatically reduce tariffs for 90 days—with U.S. duties on Chinese goods dropping from 145% to 30%, and China's on U.S. goods from 125% to 10%. Analysts at Wedbush called this the beginning of “broader and more comprehensive negotiations,” suggesting even lower tariffs could follow. They also noted the rollback may “take a recession off the table for now.”

Investors responded with a $830 billion boost in market cap for the “Magnificent Seven” tech giants on Monday alone—$155 billion of that came from Nvidia. Analysts at Melius Research added that lower trade risk makes Nvidia "much more investable" again, though they warned that new Trump-era scrutiny on chip imports under Section 232 could bring new supply chain strains in the near term.

Still, sentiment remains upbeat. One Melius note said it’s time to go “back to fundamentals” with Nvidia, pointing out that its P/E ratio is near a five-year low and that “everything needs an accelerator”—a nod to the company’s core strength in AI infrastructure.

​Bottom line? The chip sector just got a tariff-fueled adrenaline shot, and with geopolitical clouds lifting—at least temporarily—investors are ready to plug back into tech.