Advanced Micro Devices, Nvidia lead chip stocks higher as tech sector rallies
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Advanced Micro Devices (NASDAQ:AMD) and Nvidia (NASDAQ:NVDA) led chip stocks higher on Friday as the broader market and tech sector rallied on easing fears over inflation and concerns over a recession that could impact the global economy.
AMD (AMD) gained nearly 5% to $86.40, while Nvidia (NVDA) gained more than 4% to $168.92 in late morning trading.
Other chip stocks, including Broadcom (NASDAQ:AVGO), Intel (INTC), Qualcomm (QCOM), Micron (MU) and NXP Semiconductors (NXPI) all gained between 3% and 4%.
On Friday, St. Louis Federal Reserve President James Bullard said that recession fears were overblown, citing strength in consumer spending and their ability to keep spending.
Separately, inflation expectations from the University of Michigan, a closely watched measure among investors, eased, indicating the Fed may not have to go as far as some had feared to tame inflation.
Several other semiconductor stocks also rose, including Wolfspeed (NYSE:WOLF), which saw its shares jump more than 9% after Goldman Sachs upgraded shares of the semiconductor company, citing a "significant EPS inflection."
Texas Instruments (TXN), Analog Devices (ADI), Microchip (MCHP) all gained more than 2% on Friday.
Earlier this week, investment firm Morgan Stanley restarted coverage on AMD (AMD) shares, noting it is in a position to gain market share in both cloud servers and PCs.