Chip Stocks Jump, Extending Gains After Recent Sell-Off

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.

Read the original article on
Investopedia