Chip Stocks Jump Due to Multiple Positive News

Chip stocks jumped in premarket trading due to multiple positive news. Direxion Daily Semiconductors Bull 3x Shares rose 8%; VanEck Semiconductor ETF rose 3%; Seagate Technology rose 10%; Western Digital rose 8%; Texas Instruments rose 7%; SanDisk, ASML, and Intel rose 5%; Micron rose 4%; TSMC and Nvidia rose 2%; Broadcom and AMD rose 1%.

China has given the green light to three of its largest tech companies to buy Nvidia's H200 artificial intelligence chips, four people familiar with the matter told Reuters, marking a shift in position as Beijing seeks to balance its AI needs against spurring domestic development.

ASML reported stronger-than-expected bookings in the fourth quarter on Wednesday, with the world's largest supplier of computer chip equipment receiving more orders as companies boosted investment in AI chipmaking capacity.

Seagate Technology forecast third-quarter revenue and profit above Wall Street expectations on Tuesday, benefiting from strong demand for its data storage devices as enterprises scale up their use of artificial intelligence.

Texas Instruments forecast first-quarter revenue and profit above Wall Street ‌estimates on Tuesday, betting on robust demand for its analog chips from booming AI data center expansions.