Why Nvidia, Broadcom, and Other Semiconductor and AI Stocks Rallied Monday Morning
Investors got some good news that gave them hope for the future.
Investors and consumers have been climbing a wall of worry lately. The imposition of tariffs and the trade war with China has sparked concerns about the potential to reignite inflation and pressure an already fragile economy. There has even been a growing chorus warning about the potential for a recession. However, some good news on the tariffs front broke Monday morning, fueling optimism about the future and driving a broad-based market rally.
With that as a backdrop, artificial intelligence (AI) chipmaker Nvidia (NASDAQ: NVDA) and semiconductor giant Broadcom (NASDAQ: AVGO) each jumped 4.5%, chipmaker Advanced Micro Devices (NASDAQ: AMD) rallied 5.3%, and chip foundry Taiwan Semiconductor Manufacturing (NYSE: TSM), commonly referred to as TSMC, soared 6.2%, as of 12:07 p.m. ET on Monday.
A check of all the usual suspects -- financial reports, regulatory filings, and changes to analysts' price targets -- found no company-specific news to account for the run-up. This suggests that investors were focused on the positive developments related to tariffs.
