Chip stocks rallied hard on Tuesday as a broad risk-on move swept the market, with Intel up 10%, AMD up 8%, and Broadcom up 6%. The gains track a sliding VIX and a 2.8% Nasdaq 100 rally, while stretched valuations on AMD and Broadcom leave the group exposed if sentiment turns.
Intel stock jumped 10% to $99.74 Tuesday, as chip names rode a broad risk-on tape. AMD shares climbed 8% to $522, and Broadcom stock rose 6% to $416. Volatility is collapsing, and traders are rotating aggressively into growth and cyclical names.
Risk-On Tape Lifts the Whole Chip Complex
The Nasdaq 100 is rallying 2.8% on the day, and the move is coordinated with the broader market rather than isolated to chips. The CBOE Volatility Index sits at 16.11, down 11.59% over the past week, signaling that fear is draining out of financial markets.
That backdrop favors high-beta semis. Traders are reaching for AI-linked cyclicals after a rough July for chip stocks, delivering a coordinated bid across the group.
Intel Leads on an Oversold Bounce
Intel's move looks more technical than fundamental. Intel shares fell 24% over the past month heading into Tuesday's session, so much of the bounce reflects short covering and dip-buying.
Fundamental support still comes from Intel's Q2 FY2026 report, filed July 23. Revenue came in at $16.13 billion, with Data Center and AI revenue growing 59%, and management guided Q3 2026 revenue to $15.8 billion to $16.8 billion. According to 24/7 Wall St.: CEO Lip-Bu Tan called it "strongest revenue growth in more than fifteen years."
AMD and Nvidia Ride the Same AI Wave
Nvidia stock also joined the move, rising 2% to $210.7 as the rally spread across the sector.
AMD's data center segment grew 57% year-over-year last quarter. Prediction markets are pricing a 94.5% probability that AMD beats its next earnings report, a sign of how closely retail and options positioning hug the AI narrative. Broadcom's AI semiconductor revenue jumped too, with management guiding next-quarter AI semi revenue higher.
Valuation is where the risk sits. AMD trades at a P/E ratio of 171.17x, Broadcom at 68.91x, and Nvidia at 31.38x, making Nvidia the most reasonable multiple among the three. Intel carries no trailing P/E ratio because the company isn't profitable on a trailing 12-month basis.
The iShares Semiconductor ETF, which is not leveraged, rose 6% to $540, an unusually large single-day move for a diversified fund tracking NVIDIA, Broadcom, AMD, and Intel. Nvidia reports earnings later this month, a catalyst the sector is watching closely.
AMD is priced above 170 times earnings, and Intel's foundry unit is still posting losses. That leaves stretched chip valuations exposed to any shift in the VIX or the broader macro backdrop.
Source: 24/7 Wall St.
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