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Chipmaker Intel Corporation’s stock led the semiconductor sector after Federal Reserve Chairman Jerome Powell indicated that conditions were softening for potential interest rate cuts. Following Powell’s remarks at the Jackson Hole conference, where he warned of inflationary risks from tariffs but also hinted at a dovish policy stance, the S&P 500 and the NASDAQ gained 1.4% and 1.70%, respectively. Major semiconductor stocks led these gains.
Intel’s shares, which had struggled throughout the week, saw a much-needed respite today. They gained as much as 4.5%. On Tuesday, they jumped by 7% following an announcement that Japanese conglomerate Softbank would invest $2 billion in Intel. However, reports surfaced that the Trump administration could require Softbank to convert CHIPS Act grants into equity, leading shares to fall by 7% the next day. The shares were flat yesterday but gained 3% during the week if today’s gains hold.
In contrast, NVIDIA’s shares only added 1.4%, down 2.7% for the week as reports claimed that Chinese authorities pressured domestic firms not to buy NVIDIA’s H20 AI GPUs or balance them with domestic alternatives. Analysts speculate that NVIDIA might exclude China sales from its financial figures next week.
Other chip designers such as Qualcomm, AMD, and Broadcom also saw gains of more than 2%, with Broadcom leading the pack due to its exposure to custom AI chip design. AMD’s dual consumer and enterprise exposure and Qualcomm’s focus on consumer spending contributed to their stock rises.
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The strongest performer was Tesla, whose shares gained 5%. Despite struggling throughout 2025 due to weak vehicle deliveries, Wall Street remains hopeful that lower interest rates could boost Tesla’s sales. However, the stock is down by 11% year-to-date despite efforts to pivot towards AI and launch robotaxi initiatives.
