A SK Hynix Inc. 12-layer HBM3E memory chip displayed at the Semiconductor Exhibition in Seoul, South Korea.
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Chip stocks bounced on Monday, clawing back losses from Friday’s market rout as OpenAI announced another computing deal with a major chipmaker and U.S.-China tensions eased.
OpenAI and Broadcom announced a deal to develop custom artificial intelligence chips. The Sam Altman-led startup has recently inked agreements with Nvidia and Advanced Micro Devices.
Broadcom shares bounced 10% on the news.
Over the weekend, President Donald Trump tried to calm worries about China in a post on Truth Social, saying it “will all be fine.”
The VanEck Semiconductor ETF jumped 4%, while Nvidia rallied nearly 3%. Taiwan Semiconductor and On Semiconductor jumped about 8% and 9%, respectively. Micron Technology rose over 6%.
Trump sent markets into a selloff on Friday after he threatened massive tariffs on China in response to the country’s latest clampdown on rare earths. He later pledged to levy new tariffs of 100% on China imports starting on Nov. 1 and would also impose export controls on “any and all critical software.”
The tech megacaps lost $770 billion in market cap on Friday. Both Alphabet and Tesla recovered those losses during Monday’s session.
