Why AMD, Broadcom, and Taiwan Semiconductor Manufacturing Stocks Rallied on Wednesday
Investors got some good news on the tariff front and a cooling of rhetoric in Washington.
The uncertainty that has gripped the market recently has been palpable. Concerns about the on-again, off-again tariffs, a high-profile spat between the White House and the Federal Reserve Bank, and the ongoing trade war with China have raised concerns about the impact on the broader economy and led to historic volatility. However, a double dose of good news overnight sparked a broad-based market rally, which helped drive semiconductor and artificial intelligence (AI) stocks higher.
With that as a backdrop, chipmaker Advanced Micro Devices (NASDAQ: AMD) jumped 6.6%, semiconductor giant Broadcom (NASDAQ: AVGO) climbed 5.1%, and foundry Taiwan Semiconductor Manufacturing (NYSE: TSM) rallied 4.5%, as of 1:56 p.m. ET on Wednesday. A check of all the usual suspects -- earnings reports, regulatory filings, and analyst commentary -- revealed no company-specific news that was driving these stocks higher. This suggests that broader macroeconomic and geopolitical factors are at play.
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