A.I. Rebound: Chip Stocks Win Back $800 Billion
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One day of carnage, one day of bargain hunting: After their worst selloff since 2020, A.I. stocks rebounded sharply on Friday. In the first hours of trading, the 10 most important chipmakers traded in the United States won back a combined $803 billion in market value, recovering well over half of Thursday’s losses. The Nasdaq rose almost 2 percent at one point.
The Table
The figures are based on market values and gains reported by CompaniesMarketCap shortly after the U.S. market opened. From these, we calculated each company’s gain in dollars and compared it with its loss on Thursday. Because trading is still underway, all figures are intraday.
| Company | Friday’s gain | Gain | Thursday’s loss | Recovered |
|---|---|---|---|---|
| Nvidia | 7.1% | $313.1B | $447.5B | 70% |
| TSMC | 7.7% | $140.4B | $221.2B | 63% |
| AMD | 13.2% | $87.2B | $138.4B | 63% |
| Micron | 10.2% | $76.0B | $157.1B | 48% |
| Broadcom | 4.7% | $65.5B | $162.0B | 40% |
| ASML | 6.5% | $33.7B | $53.8B | 63% |
| Lam Research | 11.9% | $27.6B | $45.3B | 61% |
| Intel | 8.2% | $22.7B | $32.0B | 71% |
| Applied Materials | 8.7% | $21.9B | $39.8B | 55% |
| KLA | 8.6% | $14.5B | $26.0B | 56% |
| Total | 7.7% | $802.8B | $1,323.1B | 61% |
Source: CompaniesMarketCap, Trending Topics calculation, intraday Friday
The biggest gains are coming from the stocks hit hardest on Thursday: AMD is up about 13 percent, Lam Research nearly 12 percent and Micron about 10 percent. Nvidia, up about 7 percent, has already recovered 70 percent of its loss. Broadcom is lagging, winning back only 40 percent. On Thursday, the 16 largest chipmakers lost a combined $1.45 trillion, by our calculation, and the Philadelphia Semiconductor Index plunged 12 percent.
Why Investors Are Buying Again
The main reason is the plunge itself: After one-day losses of more than 17 percent in some cases, investors are snapping up what they see as bargains. Three other factors are helping:
- A strong labor market: The U.S. economy added 165,000 jobs in October, more than twice as many as expected. The unemployment rate fell to 4.1 percent.
- Reassurance from Texas: Gina Hinojosa, the newly elected Democratic governor who wants to halt new data centers, has said that projects that already have permits will be allowed to finish. According to Yardeni Research, those account for essentially all of Texas’s planned data center capacity in 2027.
- Full order books: AMD’s chief executive, Lisa Su, said on the company’s earnings call this week that „we do have more demand than we have supply.“ Its data center revenue nearly doubled.
Yardeni Research therefore considers the selloff overdone and calls it a buying opportunity. It sees the political backlash as another constraint on A.I. investment, alongside financial and physical bottlenecks. „But these are speed bumps, not roadblocks,“ the firm wrote in a note to clients. The VIX, Wall Street’s fear gauge, which jumped as much as 70 percent on Thursday, fell about 13 percent on Friday. According to Yahoo Finance, after similar VIX spikes since 1991, the S&P 500 was higher a month later in seven of eight cases.
A Shaky Recovery
Whether the rebound marks a real turn remains to be seen. Despite Friday’s gains, many chip stocks are still far below where they were a month ago: AMD is still down about a third over that period, according to 24/7 Wall St., and Intel about half. A bounce built only on oversold conditions can fade quickly if fresh headlines revive fears about data center limits, the financial site warned.
The strong jobs report also has a downside. According to Yahoo Finance, the data makes a Federal Reserve rate increase in December more likely, since the central bank is focused on high inflation. Higher rates hit richly valued tech stocks in particular, and the Dow was down at times on Friday. The political picture has not changed either: The new Congress, in which 78 percent of newly elected members want to regulate or restrict data centers according to one analysis, convenes in January.
