Nvidia, AMD and Micron Rebound Before the Open After Thursday's Chip Rout

Nvidia rose about 4% after falling 9.26% on Thursday, according to Seeking Alpha. AMD gained 7%, Micron and TSMC were each up about 8%, Intel and Broadcom rose 5% and Qualcomm added 2%. The SOXX and SMH semiconductor exchange-traded funds were each up about 5%, and Nasdaq 100 E-mini futures were 1.46% higher, or 390 points, ahead of the opening bell.

The bounce follows the sharpest selling in AI-linked shares in years. The Nasdaq Composite had its steepest one-day fall in 19 months on Thursday, confirming a correction and leaving the index on course for a fourth straight weekly loss. Investors dumped chip and data centre stocks after Democrats made gains in the midterm elections, including in states with large data centre projects, on concern that new rules and local opposition could slow the build-out of AI infrastructure. The selling spread through Asian and European markets on Friday before US futures turned higher.

The companies most exposed to that build-out recovered fastest. IREN rose 14%, Applied Digital 7%, Nebius 6% and CoreWeave 5% before the open. The large cloud providers were mixed: Oracle gained 2.5%, Meta and Alphabet each rose 0.4%, while Amazon fell 1% and Microsoft 1.5%.

Smaller technology companies moved on quarterly results. Laser maker nLIGHT jumped 16% after beating estimates by 11 cents a share, Indie Semiconductor rose 12% despite missing expectations and Alpha and Omega Semiconductor gained 8%. Microchip Technology slipped 2% even though it beat forecasts.

Premarket prices can shift sharply once regular trading begins at 9:30am New York time, and Friday's session will show whether buyers return to the sector or the rebound fades before the weekend.