Semiconductor stocks led the market rally on Wednesday, fueled by easing tariff concerns and a high-profile endorsement from star investor Cathie Wood.
President Donald Trump’s latest remarks on trade with China sparked optimism, as he hinted at a potential reduction in tariffs, stating they would "come down substantially" and expressing a more conciliatory tone in negotiations. This shift alleviated fears that had recently pressured chip stocks, sending the sector soaring.
Adding to the momentum, Cathie Wood’s Ark Investment Management made a bold move on Tuesday, scooping up shares in several semiconductor giants—including a $1.1 million stake in Nvidia (NVDA). The GPU leader surged over 5% the following day, nearing its 21-day moving average.
The rally extended across the sector:
Palantir Technologies (PLTR) climbed more than 7%
Super Micro Computer (SMCI) skyrocketed 10.2%
AMD (AMD) gained 8.1%
Micron (MU) jumped 6.8%
Broadcom (AVGO) rose over 7%
While semiconductor imports from China currently enjoy tariff exemptions, officials had previously warned these were temporary, with new duties expected within weeks. Trump’s latest comments, however, suggest a possible reprieve—lifting the cloud of uncertainty that had dampened investor sentiment.
The PHLX Semiconductor Index, tracking 30 major U.S. chip firms, reflected the renewed confidence, closing up roughly 4%. With trade tensions cooling and influential investors like Wood placing big bets, the sector’s rebound signals a potential turning point for tech stocks.
