Stock price movement
Advanced Micro Devices (AMD) stock rose 8.5% to $29.02 on April 3. The stock rose due to a series of positive events including optimism about resolving the US-China trade deal. Investors are also encouraged by a report from Taiwan Semiconductor Manufacturing Company (TSM) and coverage initiation by a Wall Street analyst.
Along with Advanced Micro Devices, other semiconductor stocks including Intel (INTC), Micron (MU), NVIDIA (NVDA), Marvell (MRVL), and NXP Semiconductors (NXPI) were among the top gains on April 3 due to optimism about the trade talks. Intel, Micron, NVIDIA, Marvell, and NXP Semiconductors rose 2.06%, 3.44%, 3.07%, 2.23%, and 3.65%, respectively, on April 4.
According to Larry Kudlow, the White House economic adviser, the US and China are working to close a trade deal this week. The news about a trade deal boosted the broader market and pushed up the major market indexes, semiconductor ETFs, and chip stocks that rely heavily on China for revenues.
According to a CNBC report, the top S&P 500 companies including Qualcomm (QCOM), Micron, Qorvo (QRVO), Broadcom (AVGO), and Texas Instruments (TXN) are mainly impacted by the trade deal resolution. They have significant exposure to China. The companies generate ~40%–60% of their revenues in China (FXI).