Shares of U.S. chipmakers were on the rise Monday after a temporary reprieve from Washington that will enable Chinese telecom giant Huawei Technologies to continue buying their high-tech components for the next three months.
The stock prices of Broadcom (AVGO - Get Report) , Xilinx (XLNX - Get Report) , Intel (INTC - Get Report) , Qualcomm (QCOM - Get Report) , Micron (MU - Get Report) , and Analog (ADI - Get Report) all jumped after U.S. Commerce Secretary Wilbur Ross told Fox Business Network he will grant a 90-day reprieve that will continue to allow Huawei to buy cell phone and other telecom components from U.S. firms.
Xilinx led the way with a 3.10% increase to $108.73, followed by Intel, up 2.3%, to $45.57; Micron, up 2.26% to $44.53; Analog, up 2.2% to $112.95; Qualcomm, up 2.1% to $74.83; and Broadcom, up 1.61% to $278.20. The Philadelphia Semiconductor Stock Index was up about 2% on Monday morning.
The stock move came even as the federal government added another 46 Huawei units to its economic blacklist, with the Trump Administration having branded the Chinese telecom equipment giant a potential national security risk due to its close ties to Beijing.
Huawei spent roughly $11 billion in 2018 buying chips and other components from U.S. firms such as Qualcomm and Intel, according to Reuters. That's about 16% of the $70 billion spent overall by Huawei on components worldwide last year.
The latest round of targeting brings the number of Huawei units on the Treasury Department's business ban list to 100.