Tech Market Rebounds as US-China Tensions Ease, Boosting Semiconductor Stocks

Tech stocks surged on Monday as easing tensions between the US and China alleviated fears of further tariffs, sparking a rally in semiconductor equities. Broadcom led the charge with a 10% jump after OpenAI announced a long-term AI chip partnership, while the VanEck Semiconductor ETF gained nearly 4%.

Nvidia and AMD each climbed over 3%, with Taiwan Semiconductor and On Semiconductor posting gains of 8% and 9%, respectively. Micron Technology rose more than 6%, reflecting renewed Optimism in the chip sector. Former President Donald Trump's reassuring comments on Truth Social further stabilized sentiment, helping tech giants recover from a $770 billion selloff earlier in the week.

OpenAI's 10-gigawatt chip deployment plan with Broadcom underscores the growing demand for advanced AI infrastructure, driving attention toward advanced chip packaging technologies. The sector's rebound highlights the market's sensitivity to geopolitical risks and its rapid response to positive developments.