AMD, Intel, and Broadcom surge after a technical signal suggests the semiconductor pullback is nearing an end.
Semiconductor stocks rebounded sharply in early trading, led by AMD rising 7% to $555.26 and Intel climbing 5% to $116.14. Broadcom gained 2% to $396, while the iShares Semiconductor ETF jumped 6% to $593.77. The rally follows a call from Fundstrat’s Tom Lee, who identified a rare Momentum Index signal that has marked every chip selloff bottom over the past three years.
The move reverses a recent downturn in chip stocks, with traders rotating into laggards like Micron, which surged 8%, while NVIDIA slipped 1%. Samsung’s Q2 operating profit, up nearly 19 times year over year, further supported the view that the selloff was profit-taking rather than a fundamental shift. Lee argued the structural bull case for semiconductors remains intact.
The rebound suggests investors are treating the pullback as a buying opportunity, particularly in underperforming names rather than chasing AI leaders like NVIDIA.