Chip stocks closed higher on Friday amid reports of progress on trade talks and positive industry signals.
The SOX semiconductor index, which tracks chip stocks, rose 3% on Friday as reports emerged of a possible partial trade truce in the U.S.-China negotiations taking place in Washington DC this week. Many chipmakers have substantial exposure to the Chinese market.
(AMD) - Get Report rallied 6% on Friday, partly on a note from Instinet analyst David Wong writing that market share momentum will benefit AMD. The note also cited 8% higher PC shipments last quarter that should help the whole sector. Shares of Micron (MU) - Get Report were up 5.2% late Friday, Intel (INTC) - Get Report was up 2.7% and (NVDA) - Get Report was up 2.6%.
Chip stocks have outperformed the market this year, with the SOX index up 33% compared to the Dow Jones Industrial Average 13% gain.