Semiconductor Stocks Roar Back: iShares Semiconductor ETF (SOXX) Jumps 8% as Micron, AMD and Intel Lead Tech Rebound

Semiconductor stocks led a sweeping technology rebound this week, with the iShares Semiconductor ETF (SOXX) jumping more than 8% as investors rushed back into a sector that had been left for dead just days earlier. The recovery reversed much of a violent selloff that wiped roughly $1 trillion from markets, when a single-session chip rout earlier in June stoked fears that the parabolic, AI-fueled run in semiconductors had finally run its course. Thursday's rally was broad and forceful. Micron Technology (MU) was the standout, surging nearly 12% as renewed optimism around AI-driven memory demand and firming DRAM pricing took center stage. Advanced Micro Devices (AMD) and Intel (INTC) also climbed sharply, with Intel jumping about 9% after Bank of America upgraded the stock from underperform to buy. Chip-equipment names joined the move, with Lam Research (LRCX) and Applied Materials (AMAT) each rising more than 8% on data showing continued strength in capital-spending orders from Taiwan Semiconductor, Samsung and Intel's foundry operations. The rebound rippled across the broader tape. The S&P 500 climbed 1.75% to close at 7,394.30, recovering much of the prior session's losses, while the Nasdaq surged as the chip recovery combined with feverish anticipation ahead of the SpaceX IPO pricing. Easing geopolitical tensions added fuel, after President Trump signaled that a peace agreement with Iran could be signed soon, sending oil lower and risk appetite higher. The snap-back underscores just how violent sentiment swings have become in the AI trade. Friday's drubbing had erased an estimated $1 trillion to $1.4 trillion in value across the chip complex in a single day, one of the most dramatic corrections in tech-market history. That left valuations stretched in both directions, and Thursday's surge suggests many investors viewed the pullback as a buying opportunity rather than the start of a deeper unwind. Still, the round trip leaves the sector vulnerable to continued volatility. The iShares Semiconductor ETF remains up sharply for the year, with the chip industry eyeing a $1 trillion revenue threshold, but the speed of this week's drawdown and recovery is a reminder that crowded, momentum-driven positioning can cut both ways. Bulls point to durable AI capital expenditure, tightening memory supply and resilient foundry demand as reasons the rebound has legs. Skeptics counter that elevated multiples leave little room for disappointment, and some wealth managers continue to warn of a possible broader correction this summer. For now, the message from the tape is that buyers stepped in aggressively at the lows, with Micron, AMD and Intel doing the heavy lifting to drag the entire complex—and the broader market—back from the brink.