Chip stocks recover ground led by AMD’s 8% surge

Intel (INTC) shares also saw a positive shift, rising 5% to $55.09 after a 10% drop on Thursday. However, Intel stock has experienced the largest monthly decline among the five chipmakers examined, down 51%. NVIDIA (NVDA) stock increased by 5% to $189.80, following a 9% decrease on Thursday, and is currently down 21% over the past month.

The initial downturn, which saw the PHLX Semiconductor Index plummet 12% on November 5, stemmed from investor concerns that Democratic policymakers might obstruct U.S. data center projects after the midterm elections. This, coupled with local opposition to data center construction, put pressure on AI chipmakers like AMD. The volatility extended beyond U.S. companies, impacting the NASDAQ 100 and the South Korea’s Kospi, which fell more than 6%.

Analysts are questioning whether the current recovery is a technical bounce driven by exhausted sellers or the beginning of a more sustained uptrend. AMD’s Q3 2026 revenue rose 44.7% year-over-year to $13.38 billion, with its Data Center segment experiencing a 97% increase. CEO Lisa Su stated on an earnings call, “We do have more demand than we have supply.”

Micron Technology (MU) shares rose 8%, mirroring AMD’s gain, and currently trade at $709.50. Broadcom (AVGO) stock increased 6% to $307.65, marking the smallest monthly drawdown of 18% among the five companies.

AMD distinguishes itself by offering both server processors and AI accelerators, combining EPYC CPUs with Instinct GPUs in its Helios systems. NVIDIA focuses on data center GPUs and related systems, while Intel relies on Xeon server chips, a PC business, and a foundry arm. Broadcom generates AI revenue from custom accelerators and networking, and Micron provides high-bandwidth memory.

The market will be closely watching for any new policy developments regarding data center projects, as these concerns triggered the initial decline. NVIDIA’s upcoming earnings report will also serve as a key indicator for the AI chip sector. Despite the positive rebound, the data center policy debate remains unresolved, suggesting investors should proceed with caution.