US Chip Stocks Bounce Back After the Steepest Weekly Selloff in Months

US chip stocks recovered some ground on Monday, October 19, 2026, bouncing in premarket trading after the worst week for the sector since March 2025, Reuters reported. Lower Treasury yields and cheaper crude oil helped steady a trade that had been sold hard for more than a week.

The iShares Semiconductor ETF, the largest US fund tracking chip stocks, climbed 3.6 percent before the bell, Reuters reported. The fund fell almost 12 percent last week.

Intel leads the rebound

Intel was among the top gainers, up 4.2 percent in premarket trading after falling more than 14 percent last week, Reuters reported. JPMorgan raised its rating on Intel to neutral from underweight, pointing to future positive earnings revisions on demand for agentic AI work and a shortage of chips, Reuters reported. TheStreet reported that JPMorgan left its price target unchanged at 85 dollars. Seeking Alpha reported that the stock traded at 93.27 dollars before the bell, up about 4 percent, and said the bank pointed to improved execution under chief executive Lip-Bu Tan.

The gains were broad. Nvidia rose 1.9 percent, AMD gained 3.5 percent, Marvell Technology rose 4.7 percent and Broadcom added 3.5 percent, Reuters reported. Micron Technology rose 3.6 percent after dropping 14.6 percent last week. Among storage names, Sandisk rose 4.3 percent, Western Digital rose 3.1 percent and Seagate Technology added 3.4 percent. Analog chip makers rose too, with Texas Instruments up 2.4 percent, Analog Devices up 2.9 percent and ON Semiconductor up 3 percent.

What last week did

The Philadelphia semiconductor index fell 11.4 percent last week, its biggest weekly decline since March 2025, Reuters reported. By the close on Friday, October 16, 2026, the index had fallen for eight straight sessions, and the rout wiped out about 2 trillion dollars in market value.

Hot inflation data had raised the odds of Federal Reserve rate hikes, and doubts grew over whether heavy spending on AI infrastructure will pay off, Reuters reported. Those two worries hit chip and data centre shares in the US, Europe and Asia. Even after the drop, the Philadelphia chip index is still up 57.2 percent so far this year, Reuters reported.

Help from yields and oil

Other markets helped on Monday morning. The yield on the 10 year US Treasury note fell to 5.085 percent, and Brent crude futures fell 1.8 percent to around 107 dollars a barrel after President Donald Trump waived some sanctions on Russia, Reuters reported. At 4:59 a.m. Eastern Time, Dow futures were up 0.03 percent, S and P 500 futures were up 0.47 percent and Nasdaq 100 futures were up 0.99 percent, Reuters reported.

Earnings will test the bounce

The rebound faces a quick test. Lam Research, Texas Instruments and Western Digital report quarterly results this week, and Meta Platforms, Tesla and SpaceX also report, Reuters reported. Investors will read those numbers for proof that AI spending is turning into earnings, the question that drove last week's selloff.