U.S. chip stocks rebound as Treasury yields ease after sharp sector selloff

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U.S. chip stocks rebound

Highlights

iShares Semiconductor ETF surges 3.6% in premarket after a nearly 12% drop last week, led by Intel's 4.2% recovery and J.P. Morgan upgrade.
Nvidia rises 1.9%, AMD gains 3.5%, Marvell Technology jumps 4.7%, and Micron Technology climbs 3.6% after significant sector-wide declines last week.
Philadelphia chip index, down 11.4% last week yet up 57.2% year-to-date, awaits key earnings from Lam Research, Texas Instruments, and Western Digital this week.

Premarket recovery led by Intel and broader chip names

As reported by Reuters, the iShares Semiconductor ETF, the largest exchange-traded fund tracking U.S. chip-related companies by assets under management, climbs 3.6% in premarket trading after falling nearly 12% last week.

Intel is among the top gainers, rising 4.2% after tumbling more than 14% last week. J.P. Morgan upgrades its rating on Intel to "neutral" from "underweight", citing the prospect of positive earnings revisions tied to agentic AI demand and chip scarcity.

Nvidia adds 1.9%, AMD gains 3.5%, Marvell Technology rises 4.7% and Broadcom advances 3.5%. Memory chipmaker Micron Technology also climbs 3.6% after dropping 14.6% last week, while data storage companies Sandisk, Western Digital and Seagate Technology move higher alongside analog chipmakers including Texas Instruments, Analog Devices and ON Semiconductor.

Rate outlook and earnings keep sector in focus

The Philadelphia chip index fell 11.4% last week, its biggest weekly decline since March 2025. The index had declined for eight straight sessions as of the last close, erasing about $2 trillion in market value during the selloff.

Technology stocks came under pressure last week as stronger inflation data raised the likelihood of further Federal Reserve rate hikes and deepened doubts over whether heavy AI spending will deliver sufficient returns. Even so, the Philadelphia chip index remains up 57.2% so far this year after rallying earlier in 2026 on expectations that the sector stands among the main beneficiaries of the AI boom.

Investors are now watching a busy earnings calendar for fresh signals on demand and spending trends. Lam Research, Texas Instruments and Western Digital are due to report quarterly results this week, alongside megacap technology companies Meta Platforms, Tesla and SpaceX.

In our earlier article on the AI-linked tech selloff, we noted that chipmakers and related infrastructure names slid sharply over an extended losing streak as investors reassessed lofty valuations. We also highlighted how $110 oil and renewed inflation worries added pressure by complicating expectations for the Federal Reserve’s rate path and raising financing-cost concerns across the sector.

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