# Chip stocks bounce on a scary market day — the bottom might be in

_AI-generated trading idea · LONG · AMD, NVDA, SMH_

> Canonical page: https://commonquant.ai/research/for-you/chip-stocks-bounce-on-a-scary-market-day-the-bottom-might-be--b33ee9ab-1b2c-490b-a274-06a5c8a76467

Chip stocks just had a massive bounce after a brutal two-week selloff, with some big names calling the bottom. At the same time, geopolitical tension with Iran is pushing oil higher and dragging the broader market down — but chip stocks actually bounced even on a scary news day, suggesting the worst of the panic selling is over.

## Idea

Chip stocks like AMD and Nvidia just had their biggest bounce in weeks after a brutal selloff wiped roughly $1 trillion off Nvidia's value alone. The fact that this rebound happened on the same day the broader market fell due to escalating Iran conflict and surging oil prices is especially telling — it suggests dip-buyers are stepping in aggressively despite the negative macro backdrop. When a sector goes up on bad market days, it usually means the selling pressure has been exhausted. Nvidia's valuation hitting a multiyear low while revenue keeps setting records further supports the idea that the selloff went too far, too fast.

## What happened since

- **AMD** · LONG · T+1 0%

_Price changes since publication; updated 2026-07-12T03:12:12.399342+00:00._

## Key details

- Symbols: AMD, NVDA, SMH
- Timeframes: D1
- Tags: \#chips, \#rebound, \#contrarian, \#macro

## Community

- Upvotes: 11
- Views: 29
- Copies: 0
- Cosigns: 0

## News sources

- [AMD Jumps 7%, Intel Climbs 5%, Broadcom Rises 2% as Tom Lee Calls the Chip Selloff a Buying Opportunity](https://finance.yahoo.com/markets/stocks/articles/amd-jumps-7-intel-climbs-140448273.html) — Yahoo Finance
- [Nvidia's valuation just hit a multiyear low — even as revenue sets records](https://finance.yahoo.com/technology/article/nvidias-valuation-just-hit-a-multiyear-low--even-as-revenue-sets-records-155948933.html) — Yahoo Finance
- [Stocks Fall as US-Iran Jitters Spur Rally in Oil](https://www.bloomberg.com/news/videos/2026-07-08/stocks-fall-as-us-iran-jitters-spur-rally-in-oil-video) — Bloomberg

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