The Nasdaq Composite rebounded sharply today, climbing 1.7% ahead of the close as semiconductor and memory stocks staged a powerful rally, reversing most of the previous session’s hawkish Federal Reserve-induced selloff.
Intel shares are leading the charge, surging 10.67% to $134.02 from a previous close of $121.10, making it the second-best performer in the index. The stock traded in a range of $127.91 to $135.46 and has now rocketed 516.49% over the past twelve months, with year-to-date gains exceeding 179%.
Marvell Technology posted the day’s strongest advance, jumping 11.99% to $324.27, while Micron Technology climbed 9.47% to $1,142.03. Memory and equipment makers KLA-Tencor and Lam Research rose 9.49% and 5.40% respectively, underscoring the breadth of the semiconductor rally.
The advance represented a sharp reversal from Wednesday’s 1.34% Nasdaq decline, which followed a Federal Reserve policy decision that left rates unchanged but signalled continued hawkish bias under new chair Kevin Warsh. Bond yields eased back on Thursday, providing relief to long-duration growth stocks and rekindling risk appetite across technology sectors.
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Intel’s dramatic intraday surge was triggered by a social media post from President Donald Trump announcing that Apple has agreed to work with Intel to design and manufacture chips in the United States. The announcement, delivered via Truth Social, positions Intel’s foundry business as a credible alternative to Taiwan Semiconductor Manufacturing Company for Apple’s custom silicon production. While Apple and Intel have not yet released formal statements detailing contract terms, volume commitments, or timelines, the partnership represents a significant validation of Intel’s efforts to transform its foundry operations into a competitive external business.
The development comes on the heels of earlier positive catalysts for Intel this week, including bullish analyst upgrades citing foundry momentum and optimism surrounding a US-Iran deal that reduced geopolitical risk premiums. Intel confirmed earlier in June that its 18A-P process node has entered risk production, a critical milestone for attracting large external customers. The US government currently holds approximately 10% of Intel’s equity following substantial CHIPS Act subsidies and strategic investments aimed at bolstering domestic semiconductor manufacturing capacity.
Marvell Technology’s 11.99% gain extended a remarkable run that has seen the stock more than triple over the past year, driven by its exposure to AI data-center networking, custom ASICs for hyperscalers, and 5G infrastructure. Earlier this month, Marvell surged more than 30% in a single session after Nvidia CEO Jensen Huang publicly highlighted the company as a “next-generation” player well positioned for AI networking and custom silicon opportunities.
Micron Technology’s 9.47% advance reflected continued enthusiasm for high-bandwidth memory and DRAM demand tied to AI accelerators and data-center buildouts. The memory giant has participated in multiple AI infrastructure summits this week, reinforcing its positioning as a critical supplier to the AI hardware ecosystem. Equipment makers KLA-Tencor and Lam Research benefited from expectations of sustained wafer-fab capital expenditure cycles, with the Intel-Apple partnership amplifying optimism about domestic manufacturing expansion.
Not all technology names participated in the rally. Palantir Technologies declined 2.18% to $127.78, extending losses across multiple timeframes as markets rotated out of AI-software names and into hardware plays. Workday fell 3.19% to $117.94, reflecting concerns about enterprise SaaS spending normalization and competition in the human capital management space. Cognizant Technology Solutions dropped 9.03% to $44.41, underperforming as markets favoured high-beta AI exposure over traditional IT services providers. Baker Hughes slipped 2.38% as falling oil prices weighed on energy and oilfield services names despite easing inflation concerns.
Today’s semiconductor-led rally demonstrates the market’s appetite for AI infrastructure exposure and domestic manufacturing themes, but the combination of stretched valuations, unconfirmed deal details, elevated political risk, and a hawkish Federal Reserve creates a fragile foundation that could crack quickly if execution stumbles or macro conditions deteriorate, leaving investors to weigh near-term momentum against mounting medium-term headwinds.
Bull Case:
- Intel-Apple partnership validates foundry strategy and provides long-duration high-volume customer anchor
- AI infrastructure capex cycle supports multi-year growth for memory and equipment makers
- Falling oil prices and easing yields reduce immediate pressure on technology valuations
- Government subsidies and domestic manufacturing policy create structural tailwinds for US chipmakers
- Strong momentum and technical breakouts attract further institutional and retail capital inflows
Bear Case:
- Intel-Apple deal lacks formal confirmation; markets may be overpricing opaque political announcement
- Multi-hundred-percent gains in semis leave crowded trade vulnerable to sharp factor rotations
- Fed chair Warsh’s hawkish bias threatens rate-sensitive high-valuation technology stocks structurally
- Heavy government involvement in Intel raises capital allocation and political interference concerns
- Execution risk remains high as Intel must prove 18A yields at Apple volumes
