# AMD, Micron, SK Hynix lead chip stock recovery > Source: > Published: 2026-07-20 13:31:10+00:00 **What happened: **Semiconductor stocks jumped on Monday in early trading, recovering from a rout that left the PHLX Semiconductor Index ([^SOX](https://finance.yahoo.com/quote/%5ESOX/)) down more than 9% last week. AI chip heavyweight Nvidia ([NVDA](https://finance.yahoo.com/quote/NVDA/)) rose more than 2%, while AMD ([AMD](https://finance.yahoo.com/quote/AMD/)) jumped 4% on analyst price target calls. Broadcom ([AVGO](https://finance.yahoo.com/quote/AVGO)) and Intel ([INTC](https://finance.yahoo.com/quote/INTC)) were also poised to gain on Monday. Marvell ([MRVL](https://finance.yahoo.com/quote/MRVL)) and Qualcomm ([QCOM](https://finance.yahoo.com/quote/QCOM/)) rose as well, reversing Friday's losses. Memory and storage leaders Micron Technology ([MU](https://finance.yahoo.com/quote/MU/)) and SK Hynix ([SKHY](https://finance.yahoo.com/quote/SKHY/)), meanwhile, jumped 5%. Highflier Sandisk ([SNDK](https://finance.yahoo.com/quote/SNDK/)) gained more than 3%. Among the semiconductor equipment makers, ASML ([ASML](https://finance.yahoo.com/quote/ASML/)), Applied Materials ([AMAT](https://finance.yahoo.com/quote/AMAT)), and Lam Research ([LRCX](https://finance.yahoo.com/quote/LRCX/)) edged higher. **What's behind the move: **Chipmaker AMD [was selected as a "top pick"](https://finance.yahoo.com/markets/stocks/articles/why-amd-stock-falling-premarket-080908737.html) by Rosenblatt, which raised its price target on the stock to $665 from $490. UBS analysts also raised their price target on the stock to $700, maintaining a Buy rating ahead of the chipmaker's annual AI conference this week. Monday's jump in semiconductor stocks comes as investors weigh the risks of growing global competition from Chinese startups such as [Moonshot, which unveiled Kimi K3](https://finance.yahoo.com/technology/ai/articles/chinas-moonshot-unveils-worlds-largest-020622030.html), a model that runs at a much lower cost than US models. China's growing ecosystem of open-weight AI models, which enterprises can download, fine-tune, and run on their own infrastructure, calls into question US valuations, particularly after the US withdrew Anthropic's ([ANTH.PVT](https://finance.yahoo.com/quote/ANTH.PVT/)) Fable and Mythos models over security concerns. "The immediate market reaction — pressure on AI and semiconductor names — reflects a reassessment of whether the industry's current capex trajectory is sustainable if similar performance can be delivered more cheaply," Deutsche Bank analysts wrote on Monday. **What else you need to know: **Artificial intelligence costs have been rising. Taiwan Semiconductor Manufacturing Company ([TSM](https://finance.yahoo.com/quote/TSM/)) last week guided to higher-than-anticipated capital expenditures, in part due to higher tool prices. Investors will be eyeing Alphabet's ([GOOG](https://finance.yahoo.com/quote/GOOG), [GOOGL](https://finance.yahoo.com/quote/GOOGL/)) quarterly results this week for clues on its continued AI infrastructure spending, as well as any commentary on the tech giant's own AI models. Last week, Bloomberg reported that Alphabet was behind schedule in delivering Gemini 3.5 Pro, its most powerful AI model. *Ines Ferre is a senior business reporter for Yahoo Finance. Follow her on X at **@ines_ferre**.* **Click here for in-depth analysis of the latest stock market news and events moving stock prices** **Read the latest financial and business news from Yahoo Finance**