US semiconductor shares staged a sharp recovery on Monday, reversing the heavy losses that had dragged the sector into bear market territory over the previous week.
The rebound was broad-based across major chipmakers, signaling a return of risk-on sentiment among technology investors after a period of intense volatility.
The rally extended the upward trajectory seen in US equity markets, with the Nasdaq Composite leading the advance.
Investors appear to be rotating back into growth names as the immediate selling pressure eased, though the sector remains sensitive to broader macroeconomic signals and valuation concerns.
This recovery comes at a critical juncture for the industry, with Alphabet (GOOGL) scheduled to report its second-quarter earnings on Tuesday.
The tech giant's results will be closely scrutinized for insights into AI monetization and cloud growth, themes that have been central to investor focus in recent months. Strong performance from Alphabet could provide further tailwinds for the semiconductor supply chain, particularly for companies involved in data center infrastructure.