AI and semiconductor stocks, led by industry giants Nvidia and Taiwan Semiconductor Manufacturing Company (TSMC), provided crucial support to the Nasdaq this week as investors grew optimistic about a potential easing of U.S. chip export restrictions.
The sector’s strength reflects growing confidence that ongoing trade negotiations between the United States and China could lead to relaxed controls on semiconductor shipments, a move that would significantly benefit chipmakers heavily reliant on global supply chains and Chinese markets.
Nvidia’s shares climbed steadily, fueled by strong demand for its AI processors powering generative AI applications, while TSMC’s stock also gained ground on expectations of increased manufacturing orders and improved cross-border trade flows. The semiconductor sector’s rally helped offset broader market uncertainties, with the PHLX Semiconductor Index registering notable gains.
Investors are closely monitoring developments in trade policy, viewing any reduction in export barriers as a major catalyst for sustained growth in chip stocks, which remain central to the AI revolution and digital infrastructure expansion.
In contrast, Apple’s stock underperformed following its recent Worldwide Developers Conference (WWDC) 2025. Despite unveiling new AI-driven features branded as “Apple Intelligence” and updates to its virtual assistant Siri, the company failed to impress investors seeking a more aggressive AI strategy.
Market participants expressed disappointment over the perceived lack of innovation relative to competitors like Google and Microsoft, whose AI initiatives have garnered stronger enthusiasm. Additionally, Apple’s significant exposure to China—both as a manufacturing hub and a key consumer market—continues to weigh on investor sentiment amid ongoing geopolitical tensions and regulatory scrutiny.
The muted response to Apple’s event highlights growing investor demand for clearer direction on AI integration and risk management related to China.
While Apple remains a dominant player in consumer technology, its cautious approach to AI and the complexities of its China operations have tempered near-term stock performance. The company’s shares slipped modestly, reflecting broader concerns about its ability to keep pace in a rapidly evolving tech landscape dominated by AI innovation.
Overall, the Nasdaq’s recent resilience owes much to the strength of AI and semiconductor names, which are benefiting from favorable trade developments and surging demand for AI chips.
Meanwhile, Apple’s underperformance underscores the challenges legacy tech giants face in adapting to new market dynamics and investor expectations focused on AI leadership and geopolitical risk mitigation.
