2 Semiconductor Stocks Enjoying Nvidia Tailwinds

Nvidia announced it could soon resume AI chip sales to China, propelling its shares and the Nasdaq Composite to record highs. This news provided a significant halo lift for sector peers, with Advanced Micro Devices (AMD) surging 6.9% to $156.34, reaching a 2025 high and now up 29.9% year-to-date, while Broadcom (AVGO) climbed 2.2% to a record high of $281.76, having gained over 63% in the last 12 months. The development underscores continued strong demand and market optimism for the AI chip sector.

Analysis

Nvidia's announcement that it could "soon" resume AI chip sales to China has acted as a significant catalyst, reinforcing the highly positive sentiment surrounding the semiconductor sector and pushing the Nasdaq Composite to new records. This development extends beyond Nvidia, creating a substantial halo effect for its peers. Advanced Micro Devices (AMD) emerged as a top performer, surging 6.9% to $156.34 and breaking a key technical ceiling at the $150 level to hit a 2025 high. This price action is supported by a dramatic increase in bullish options activity, with call volume doubling its typical rate and open interest building in the July 160 calls, indicating strong speculative conviction for further upside. Similarly, Broadcom (AVGO) achieved a new record high, climbing 2.2% to $281.76, with its 20-day moving average providing consistent technical support since April. Interestingly, Broadcom's options market, reflected by a Schaeffer's put/call open interest ratio (SOIR) of 1.05, shows lingering bearishness among short-term traders, suggesting that an unwinding of these positions could provide additional tailwinds for the stock.

Key Decisions for Investors

• Given the broad-based rally and technical breakouts across NVDA, AMD, and AVGO, investors should recognize the potent positive sentiment driving the AI semiconductor sector, though remain aware that the rally is partly predicated on a prospective, not confirmed, event.
• The significant surge in call option volume for AMD signals strong, short-term bullish conviction from traders, suggesting a potential for continued upward momentum following its break above the $150 resistance level.
• For Broadcom, the combination of a new all-time high with a still-bearish leaning options sentiment (SOIR of 1.05) presents a unique dynamic; an unwinding of these bearish bets could serve as a secondary catalyst for the stock.
• Closely monitor official timelines and the scope of Nvidia's potential resumption of China sales, as any concrete details or delays will be a primary driver of sentiment and valuation for the entire sector in the near term.