Nvidia, Broadcom Lead Semiconductor Surge As AI Demand, Tariff Relief And Big Tech Investments Fuel Momentum
Nvidia, Broadcom, and other semiconductor stocks are experiencing a surge due to strong AI demand and tariff relief. AMD reported a 32% year-over-year revenue increase but missed EPS expectations, while Super Micro's sales rose but also fell short of estimates. Both companies provided optimistic guidance, reflecting ongoing AI demand from major tech firms. Taiwan Semiconductor's stock rose after being exempted from proposed tariffs, and Apple announced a $100 billion U.S. investment to strengthen domestic supply chains. The PHLX Semiconductor Index gained approximately 2.5% this week, with notable stock increases for Nvidia, Marvell, and Broadcom.
Semiconductor stocks Nvidia NVDA, Advanced Micro Devices AMD, Broadcom AVGO, Marvell Technology MRVL, Arm Holdings ARM, Micron Technology MU, Qualcomm QCOM, and Super Micro Computer SMCI continue to trend amid an exciting week that included the quarterly results of AMD, Super Micro, and Apple AAPL, boosting its U.S. investment and tariff updates.
AMD and Super Micro failed to impress the Street with their performance. AMD reported second-quarter revenue of $7.69 billion, up 32% year-over-year and above the $7.41 billion estimate. It posted adjusted EPS of 48 cents, narrowly missing expectations. Adjusted gross margin fell to 43% due to $800 million in charges tied to U.S. export controls.
Also Read: Nvidia, Broadcom, Marvell Lead Chip Stock Slide After Trump Hits China, Taiwan With New Tariffs
CEO Lisa Su expects strong growth in the second half of 2025 from the Instinct MI350 accelerator ramp-up and gains in EPYC and Ryzen market share. AMD guided third-quarter revenue to about $8.7 billion, plus or minus $300 million, topping the $8.15 billion consensus. Shares fell 5% after the results.
Super Micro reported fourth-quarter net sales of $5.76 billion, up from $4.6 billion in the prior quarter but below the $5.88 billion estimate, with EPS of $0.41 missing the $0.44 consensus.
Gross margin slipped to 9.5%. For fiscal 2025, net sales rose 47% to $22 billion, while EPS declined to $1.68 from $1.92. CEO Charles Liang cited strong demand for AI solutions.
The company guided first-quarter fiscal 2026 net sales between $6.0 billion and $7.0 billion, EPS of $0.40 to $0.52, and full-year sales of at least $33 billion, down from prior $40 billion guidance but ahead of the $29.80 billion estimate.
However, AMD and Super Micro’s optimistic guidance bears testimony to continued demand for AI solutions as big tech giants, including Meta Platforms META, Microsoft MSFT, Google parent Alphabet GOOGL, and Apple remain invested in the AI endeavours.
Taiwan Semiconductor’s stock surged on August 7 after Taiwanese officials confirmed its exemption from President Donald Trump’s proposed 100% semiconductor tariffs.
The week also saw Apple’s $100 billion U.S. investment, a strategic move to ease Trump administration tensions and secure long-term growth under tariff pressure, according to Wedbush analyst Daniel Ives.
He linked the plan to Apple’s partnerships with Taiwan Semiconductor and other chipmakers, projecting over 19 billion U.S.-made chips in 2025. Ives said the initiative strengthens domestic supply chains.
Additionally, on Friday, Taiwan Semiconductor brought respite, posting July 2025 revenue of 323.17 billion New Taiwanese dollars ($10.66 billion), up 22.5% Q/Q and 25.8% Y/Y, driven by strong AI chip demand. Shares also jumped after Taiwan confirmed the company’s exemption from proposed U.S. 100% chip tariffs.
The PHLX Semiconductor Index gained ~2.5% this week, and Nvidia, Marvell, and Broadcom stocks gained 3% to 6%.
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