Intel surges 10%, AMD jumps 8%, Broadcom rises 6% on broad-based risk-on sentiment and sustained AI chip demand signals.
Semiconductor stocks surged midday Tuesday as broad risk-on sentiment lifted the entire chip complex. Intel (NASDAQ:INTC) led with a 10% jump to $99.74, while Advanced Micro Devices (NASDAQ:AMD) climbed 8% to $522 and Broadcom (NASDAQ:AVGO) gained 6% to $416. NVIDIA rose 2% to $210.7, and the iShares Semiconductor ETF (NASDAQ:SOXX) jumped 6% to $540—an unusually large single-day move for a non-leveraged sector fund, signaling coordinated strength across top holdings.
The rally was coordinated with broader market momentum, as the NASDAQ 100 rallied 2.8% on the day. The primary driver was collapsing volatility: the CBOE Volatility Index fell to 16.11, down 11.59% over the past week, draining fear from financial markets and favoring high-beta semiconductor names. Traders rotated aggressively into growth and cyclical positions after a rough July for chip stocks.
Intel's move appeared more technical than fundamental. After a 24% monthly slide heading into today's session, the 10% bounce largely reflected short covering and dip-buying. That said, Intel reported Q2 FY2026 revenue of $16.13 billion on July 23, with Data Center and AI revenue growing 59%. The company guided Q3 2026 revenue to $15.8 billion to $16.8 billion. CEO Lip-Bu Tan called it Intel's "strongest revenue growth in more than fifteen years." The short-dated put/call ratio of 0.35 suggested options traders were leaning bullish into the bounce rather than hedging aggressively.
AMD and Broadcom climbed alongside Intel on the back of bullish AI-memory analyst notes this week, with price-target hikes spilling into broader chip sentiment. AMD's data center segment grew 57% year-over-year last quarter, while Broadcom's AI semiconductor revenue jumped with guidance for higher next-quarter AI semi revenue. Prediction markets priced a 94.5% probability that AMD beats its next earnings report, reflecting how tightly retail and options positioning hugged the AI narrative.
Valuations remained elevated despite today's momentum. AMD traded at a 171x P/E ratio, Broadcom at 69x, and NVIDIA at 31x, making NVIDIA the cheapest among mega-cap chip names and AMD the richest. Intel has no trailing P/E ratio because it is not profitable on a trailing 12-month basis.
Looking ahead, NVIDIA will report earnings later this month, with incremental commentary on AI capex serving as the next major sector-wide inflection point. Rate signals and VIX direction may also shape whether the risk-on rotation extends. While the setup remains constructive for AI-exposed semis, P/E ratios north of 170x on AMD and continued Intel Foundry losses leave room for volatility on any macro deterioration. Traders may keep this group active based on momentum, though investors should size positions carefully given how much of today's move rested on tape flow rather than fresh fundamentals.