Broadcom, AMD Lead Chip Stocks Rally Tuesday

Shares of Advanced Micro Devices (AMD), Broadcom (AVGO), and other semiconductor companies surged Tuesday, amid broader market gains as investors welcomed news of a cease-fire agreement between Israel and Iran.

AMD stock was up 5% in recent trading, making it one of the best-performing stocks on the S&P 500 and Nasdaq, while Broadcom added 4%. Intel (INTC), Nvidia (NVDA), and TSMC (TSM) were also among the other chip stocks on the rise, boosting the PHLX Semiconductor Index (SOX) over 3%. Micron Technology (MU) climbed 4% higher a day ahead of its quarterly results.

On Monday, Melius analysts reportedly said AMD stock “has a lot more to go” as the company’s position in the artificial intelligence industry grows. The broker raised its price target to $175 from $110, above the Wall Street consensus of roughly $124 compiled by Visible Alpha. 

Broadcom stock meanwhile got an upgrade to “buy” from “hold” by analysts at HSBC Tuesday. The bank raised its price target to $400 from $240, placing it well above the Street consensus of $294. The chipmaker’s application-specific integrated circuit business has the “potential to knock our socks off,” HSBC said.

Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in our editorial policy.