Shares of Advanced Micro Devices (NASDAQ:AMD | AMD Price Prediction) are up 7% to $555.26 in early trading Thursday, leading a broad semiconductor rebound. Intel (NASDAQ:INTC) shares are up 5% to $116.14, and Broadcom (NASDAQ:AVGO) shares are up 2% to $396.
The bounce reverses a rough stretch for chip names after several sessions of selling. The iShares Semiconductor ETF is confirming the move, with the ETF up 6% to $593.77. That’s a concentrated basket, so single-name leadership matters here.
Tom Lee Frames the Selloff as a Buying Opportunity
The trigger is a widely circulated call from Fundstrat’s Tom Lee, who told CNBC that the “structural bull case to own these is intact, so it’s a buying opportunity.” Lee argued that the semiconductor and memory unwind is in its later stages.
He pointed to a technical tell: the Momentum Index fell 8% over five sessions, which has happened only five times in three years, each marking a selloff bottom. That framing gave dip buyers cover to step back in across AMD, Intel, Broadcom, and memory names.
The fundamental backdrop is cooperating here. AMD posted Q1 2026 revenue of $10.25 billion, up 38% year over year, with the Data Center segment up 57% year over year to $5.78 billion. CEO Lisa Su called it an “outstanding first quarter, driven by accelerating demand for AI infrastructure.” Broadcom’s Q2 FY2026 AI semiconductor revenue reached $10.8 billion, up 143% year over year.
Memory Strength and Geopolitics Add Fuel
Overseas action set the tone for tech stocks in general. South Korea’s SK Hynix jumped 5% in Seoul, and Samsung ripped higher after posting preliminary Q2 operating profit of roughly 89.4 trillion won, or $58.44 billion, up about 19 times year over year on revenue up 129% year over year. The selloff from earlier this week now looks like profit-taking against those numbers rather than a fundamental crack.
Two secondary tailwinds helped. President Trump said Iran called seeking a deal, easing geopolitical anxiety and lifting futures. Also, SK Hynix is set to price its U.S. IPO Thursday, refocusing investor attention on high-bandwidth memory demand tied to AI training.
Micron Technology (NASDAQ:MU) is riding the same wave, with MU shares up 8% in early trading to $1,027.81. Micron’s Q3 FY2026 revenue came in at $41.46 billion, and CEO Sanjay Mehrotra emphasized the “strategic value of memory in the AI era.”
NVIDIA Lags as the Rally Broadens
NVIDIA (NASDAQ:NVDA) is the notable outlier, with NVDA shares down 1% to $201.92. Polymarket traders assign a 69% probability that NVIDIA closes down today, suggesting rotation into laggards like Intel and AMD rather than fresh money chasing the mega-cap leader.
The rotation story shows up in the tape. AMD stock is up 142% year to date, and INTC stock is up 199% across the same period, meaning traders are pressing recent momentum names rather than the AI incumbent.
The bear case hasn’t disappeared, though. Valuations are rich after a huge run, memory pricing remains cyclical, and Chinese competition (highlighted by DeepSeek’s reported in-house AI chip effort) keeps the long-term debate polarizing. Investors should consider keeping their position sizes measured even as share prices rise.
What to Watch
The SK Hynix U.S. IPO pricing this evening is the next real-time data point. A strong book would validate Lee’s structural read on memory demand and could extend the rebound into Friday. However, a soft result could stall momentum and reopen the profit-taking narrative that dominated last week.
Intraday, traders can watch for whether AMD stock holds above the $550 level into the afternoon. That level, plus the semiconductor ETF’s ability to close near its intraday high, will tell investors whether today’s bounce is the start of a new leg or another countertrend pop inside a choppier range.
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