US Stocks Rise as Semiconductor Industry Gains Momentum
The US stock market saw a mixed performance on Friday, September 7, amidst strong August nonfarm payrolls. The major averages fell after printing a stronger-than-expected 162,000 jobs, but the Philadelphia Semiconductor Index rose about 3.4%. Micron Technology (MU) led the gains in the sector, rising nearly 6%.
One of the key drivers behind the semiconductor industry's performance was Micron's plans to increase its high-bandwidth memory (HBM) production capacity by year-end, with 12-high HBM4 potentially reaching half of output. This move is expected to boost demand for Nvidia's Vera Rubin platform and has already started showing up in Friday's tape.
Other beneficiaries of the trend include SanDisk (SNDK), SK hynix ADR, Seagate, and Western Digital, all of which rose significantly on Friday. Meanwhile, Astera Labs, Coherent, Corning, Lumentum, and Marvell also saw gains, as the trade shifts from software to physical layer components such as high-speed optical interconnects.
The Commerce Secretary's comments on semiconductor tariffs have also had an impact on the market. The proposed framework aims to incentivize domestic chip production by offering tax breaks for companies that build in America. Intel (INTC) saw a 4.51% rise after the announcement, while AMD rose about 4.7%. The company is expected to invest around $1.2 trillion in US chip production and has already begun construction on its TSMC Arizona expansion.