Chipmakers staged a comeback Tuesday as Wall Street found its footing after a bruising stretch fueled by trade tensions between the United States and China.

Shares of Nvidia (NVDA, Financials), Broadcom (AVGO, Financials), Intel (INTC, Financials), Micron Technology (MU, Financials), Lam Research (LRCX, Financials), and Applied Materials (AMAT, Financials) moved higher during the session. The gains followed a sharp sell-off sparked by a new round of tariffs announced by President Donald Trump and China's swift retaliation, which had rattled investors just days earlier.

This bounce in semiconductor stocks came as part of a broader market recovery, with investors appearing more comfortable that the worst-case scenarios around tariffs may not materialize — or at least not right away. Though the outlook for U.S.-China relations remains cloudy, the rally in chips suggests many traders see long-term value in the sector.

The Philadelphia Semiconductor Index, which tracks major chip companies, also climbed after a string of losses.

Still, the industry isn't out of the woods. Many of the firms benefiting Tuesday are tightly woven into global supply chains, and any escalation in restrictions or export bans could quickly reverse sentiment. Some investors see the recent drop in prices as a chance to scoop up quality names at a discount, betting that long-term demand for AI chips, memory, and data infrastructure will outweigh short-term policy risks.

The next few weeks could prove critical, with both governments expected to make additional statements that could shape the trade landscape. For now, semiconductor stocks are catching their breath after a rough ride.