Chip stocks in the U.S. market are collectively rising in Monday's pre-market trading session following last week's significant volatility. Advanced Micro Devices (AMD) is up 1.52%, Intel (INTC) has gained 1.08%, and NVIDIA (NVDA) is also up 1.08%. Qualcomm (QCOM) is leading the sector with a 2.16% increase.

Last week, semiconductor stocks faced their most severe sell-off since the AI rally began, with the Philadelphia Semiconductor Index plunging consecutively. Major chipmakers like Micron Technology, AMD, and Intel each saw weekly declines exceeding 6%. Wall Street investors retreated from the semiconductor sector due to concerns over stretched valuations and extended investment payback periods for AI infrastructure.

Drivers of the Pre-Market Recovery

The pre-market rebound is closely tied to market expectations for sustained, strong demand for AI computing power. As core suppliers of AI infrastructure, NVIDIA and AMD continue to benefit from growing demand for large model training and inference. Meanwhile, Intel and Qualcomm are actively positioning themselves in on-device AI and edge computing, respectively. Additionally, futures for the three major U.S. stock indices are all trading higher on Monday, with Nasdaq 100 futures up over 1%, indicating a general improvement in overall market sentiment.

Potential for Continued Gains

If the optimistic mood persists into the regular trading session, chip stocks could maintain their upward momentum in early trading. However, analysts note that the semiconductor sector's substantial prior gains and elevated valuation concerns have not been fully absorbed. Coupled with uncertainty surrounding Federal Reserve monetary policy, chip stocks may still face volatility in the short term, and the sustainability of this rebound requires further observation.