Key facts
- US chip stocks rebounded on Monday after a sharp weekly decline.
- The Philadelphia chip index dropped 11.4% last week, its biggest weekly decline since March 2025.
- Despite recent losses, the Philadelphia chip index is up 57.2% so far this year.
US chip stocks saw a rebound on Monday, recovering some ground after a significant selloff last week. The iShares Semiconductor ETF, a major tracker of US chip companies, climbed 3.6% in premarket trading. This recovery followed a nearly 12% drop last week. Lower Treasury yields and easing crude oil prices provided some support to the AI trade. Intel was a top gainer, rising 4.2% after a more than 14% tumble last week, boosted by an upgrade from J.P.Morgan. Other chipmakers like Nvidia, AMD, Marvell Technology, Broadcom, and Micron Technology also saw gains. Data storage firms and analog chipmakers also participated in the rally. The Philadelphia chip index, which had fallen for eight straight sessions, marking its biggest weekly decline since March 2025, is still up 57.2% year-to-date. Investors had previously viewed chip stocks as major beneficiaries of the AI boom, but concerns over inflation, potential Fed rate hikes, and the payoff of high AI spending weighed on the sector last week. Several companies, including Lam Research, Texas Instruments, Western Digital, Meta Platforms, Tesla, and SpaceX, are scheduled to report quarterly earnings this week.