Advanced Micro Devices (AMD), Nvidia (NVDA), and other chip stocks rallied Monday following reports the Trump administration may not target the semiconductor industry as part of the tariffs scheduled to take effect on April 2.

AMD shares were up nearly 8% in recent trading, making it one of the best-performing stocks in the S&P 500. Nvidia shares climbed close to 4%, while NXP Semiconductors (NXPI) added 5%. Micron Technology (MU) and Qualcomm (QCOM) shares were also higher, with the PHLX Semiconductor Sector Index (SOX) climbing over 3%.

Over the weekend, The Wall Street Journal reported that tariffs targeting specific sectors such as automobiles, pharmaceuticals, and semiconductors are unlikely to be announced on April 2. Reciprocal taxes on targeted nations are still expected to go into effect.

Worries that semiconductors could be subject to tariffs of 25% or more, as Trump previously suggested, have weighed on chip stocks in recent weeks, with the SOX index down 5% for 2025 so far. Investors also have been wary further export curbs could drag on chip sales.

The emergence of a lower-cost model from Chinese AI startup DeepSeek has also raised concerns about how much Big Tech firms will invest in AI infrastructure. However, many of America's biggest tech giants recently announced plans to boost their spending, with Amazon saying it expects to spend more than $100 billion in capital expenditures in 2025, following similar announcements from Google parent Alphabet (GOOGL), Microsoft (MSFT), and Meta Platforms (META).