Key Takeaways

Chip stocks including Nvidia ( NVDA ) and Broadcom ( AVGO ) rose sharply Wednesday, a day after President Donald Trump reportedly said the administration's tariffs on China " will come down substantially ."

Shares of Nvidia jumped more than 5% in recent trading, Broadcom added 6%, and Advanced Micro Devices ( AMD ) gained 7%. Intel ( INTC ) shares surged 7% as investors also digested a report that the chipmaker is planning to cut more than 20% of its staff.

The PHLX Semiconductor Index, which tracks the 30 largest U.S.-listed semiconductor sector, was up about 5.5%.

The rally comes after Trump said late Tuesday he intends to be "very nice" to China in trade negotiations. Semiconductors are presently exempt from the administration's "reciprocal" tariffs, but the administration previously suggested it planned to impose steep import taxes targeting the sector.

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