Semiconductor stocks surge as Intel jumps 10%, AMD gains 8%

Semiconductor stocks surged Tuesday as a broad risk-on tape lifted the entire chip complex, with Intel jumping 10 percent and AMD gaining 8 percent.

The Nasdaq 100 rallied 2.8 percent Tuesday as semiconductor stocks surged, with Intel up 10 percent to $99.74 and AMD up 8 percent to $522. Broadcom rose 6 percent to $416, NVIDIA gained 2 percent to $210.7, and the iShares Semiconductor ETF climbed 6 percent to $540. The rally was coordinated with the broader tape, as traders rotated aggressively into growth and cyclical names.

"This is Intel's strongest revenue growth in more than fifteen years," CEO Lip-Bu Tan said after the company's Q2 FY2026 report showed revenue of $16.13 billion with Data Center and AI revenue growing 59 percent. Management guided Q3 2026 revenue to a range of $15.8 billion to $16.8 billion.

The CBOE Volatility Index fell to 16.11, down 11.59 percent over the past week, as fear drained from financial markets. That backdrop favors high-beta semis, and traders reached for AI-linked cyclicals after a rough July for chip stocks. Intel's short-dated put/call ratio sits at 0.35, suggesting options traders lean bullish into the bounce rather than hedging it aggressively.

The rally leaves AMD trading at 171.17x earnings versus NVIDIA's 31.38x, exposing the richest chip valuations to any macro wobble. NVIDIA reports earnings later this month, and commentary on AI capex will be the next sector-wide inflection point.

Intel Leads on an Oversold Bounce

Intel shares fell 24 percent over the past month heading into Tuesday's session, so a large chunk of the 10 percent bounce reflects short covering and dip-buying. The fundamental support remains the Q2 FY2026 report filed July 23, which showed revenue of $16.13 billion and Data Center and AI revenue growing 59 percent. CEO Lip-Bu Tan called the quarter the company's strongest revenue growth in more than fifteen years, and the short-dated put/call ratio of 0.35 confirms options traders are leaning into the bounce rather than hedging it.

AMD and Broadcom Ride the AI Read-Across

Advanced Micro Devices and Broadcom climbed alongside Intel, with a wave of bullish AI-memory analyst notes this week providing a secondary tailwind. Price-target hikes across the memory group, including a strong analyst backdrop on Micron Technology, appear to be spilling into broader chip sentiment. Prediction markets price a 94.5 percent probability that AMD beats its next earnings report, a reflection of how tightly retail and options flows are hugging the AI narrative.

AMD's data center segment grew 57 percent year over year last quarter, and Broadcom's AI semiconductor revenue jumped, with management guiding next-quarter AI semi revenue higher. The valuation gap is stark: AMD trades at 171.17x earnings, Broadcom at 68.91x, and NVIDIA at 31.38x. Intel has no trailing P/E ratio because the company isn't profitable on a trailing 12-month basis.

The iShares Semiconductor ETF is up 6 percent intraday, an unusually large single-day move for a diversified sector fund. SOXX isn't leveraged, so a 6 percent rally signals a coordinated bid across its top holdings, which include NVIDIA, Broadcom, AMD, and Intel. The fund carries an expense ratio of 0.34 percent and is heavily concentrated in the largest chip designers and foundry names.

Traders will watch whether today's gains hold into the close, particularly in Intel, where the 10 percent pop lacks a clean company-specific driver. NVIDIA's earnings later this month and any incremental commentary on AI capex represent the next major sector-wide inflection point. Rate signals and the direction of the VIX may also shape whether the risk-on rotation extends through the week. Investors may want to size positions carefully given how much of today's move rests on tape flow rather than fresh fundamentals.

This article is for informational purposes only and does not constitute investment advice.