A SK Hynix Inc. 12-layer HBM3E memory chip displayed at the Semiconductor Exhibition in Seoul, South Korea.
Chip stocks bounced on Monday, clawing back losses from Friday's market rout as OpenAI announced another computing deal with a major chipmaker and U.S.-China tensions eased.
OpenAI and Broadcom announced a deal to develop custom artificial intelligence chips. The Sam Altman-led startup has recently inked agreements with Nvidia and Advanced Micro Devices .
Broadcom shares bounced 9% on the news.
Over the weekend, President Donald Trump tried to calm worries about China in a post on Truth Social, saying it "will all be fine."
The VanEck Semiconductor ETF jumped nearly 4%, while Nvidia and AMD rallied more than 3% each. Taiwan Semiconductor and On Semiconductor jumped about 6% each, while Micron Technology rose over 4%.
Trump sent markets into a selloff on Friday after he threatened massive tariffs on China in response to the country's latest clampdown on rare earths. He later pledged to levy new tariffs of 100% on China imports starting on Nov. 1 and would also impose export controls on "any and all critical software."
The tech megacaps lost $770 billion in market cap on Friday.