Global chip stocks surge, lifting AMD's premarket trading by 9% after earnings and geopolitics positively impact the sector.
- On Wednesday, global semiconductor firms' shares rose due to positive earnings in the industry and a report suggesting less strict U.S. export restrictions on China.
- In U.S. premarket trading, AMD's shares rose more than 9% following a strong second-quarter earnings report, while Samsung's shares also increased after a significant increase in operating profit.
- New U.S. chip export restrictions to China may exclude allies like the Netherlands, Japan, and South Korea, causing ASML shares to rise.
On Wednesday, global semiconductor firms' shares rose due to positive earnings in the industry and a report suggesting less strict U.S. export restrictions on China.
AMD reported a top and bottom line beat in its second-quarter financial report, resulting in a more than 9% increase in shares during U.S. premarket trading. The company's data center business experienced strong growth, primarily due to the sales of its graphics processing units (GPUs), which are utilized in the training of artificial intelligence models.
U.S. chipmakers received a boost from a strong set of numbers, with rival seeing a 5% increase in premarket trading.
On Wednesday, the world's largest memory chip company reported a 1,458.2% year-on-year increase in second-quarter operating profit. Some of its chips are also crucial for AI applications. Samsung shares finished 3.58% higher in South Korea, while SK Hynix shares closed 3% higher.
The U.S. is considering expanding a rule that could restrict the exports of semiconductor-related equipment from foreign companies to China, but that allies including Japan, the Netherlands and South Korea could be excluded, according to Reuters.
Earlier this month, Bloomberg reported that those countries may be subject to restrictions, but this contradicts that report.
The Reuters report boosted the rally for South Korean firms Samsung and SK Hynix.
On Wednesday, the Dutch semiconductor equipment firm's stock was up to 10%, while the Japanese chip gear maker's stock closed at 7.41%.
Technology
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