US chip stocks rise after steepest weekly selloff in months
Oct 19 (Reuters) - US chip stocks recovered some ground on Monday, bouncing after a bruising selloff last week as lower Treasury yields and easing crude oil prices offered some support to the recently battered AI trade.
The iShares Semiconductor ETF SOXX.O, which is the largest ETF tracking US chip-related companies in terms of assets under management, climbed 3.6% in premarket trading after falling almost 12% last week.
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Intel INTC.O was among top gainers, up 4.2% after tumbling over 14% last week
J.P.Morgan upgraded its rating on Intel to "neutral" from "underweight", citing future positive earnings revisions on agentic AI demand and chip scarcity
Chip giant Nvidia NVDA.O up 1.9%, AMD AMD.O gained 3.5%, Marvell Technology MRVL.O rose 4.7% and Broadcom AVGO.O added 3.5%
Memory chipmaker Micron Technology MU.O up 3.6% after dropping 14.6% last week
Data storage firms Sandisk SNDK.O up 4.3%, Western Digital WDC.O rose 3.1% and Seagate Technology STX.O added 3.4%
Analog chipmakers also gain: Texas Instruments TXN.O up 2.4%, Analog Devices ADI.O gains 2.9% and ON Semiconductor ON.O rises 3%
The Philadelphia chip index .SOX dropped 11.4% last week, marking its biggest weekly decline since March 2025
The index had fallen for eight straight sessions as of last close, wiping out about $2 trillion in market value during the rout
Hot inflation raising the odds of Fed rate hikes and doubts about high AI-spending paying off weighed on tech stocks last week
Despite recent losses, the Philadelphia chips index is up 57.2% so far this year
Chips stocks rallied earlier this year as investors viewed the space as one of the biggest winners of the AI boom
Lam Research LRCX.O, Texas Instruments and Western Digital are set to report quarterly earnings this week
Megacap tech stocks Meta Platforms META.O, Tesla TSLA.O and SpaceX SPCX.O are also set to report earnings this week