AI Chip Rally Returns Friday With Nvidia and Other Semiconductor Stocks Rising [Video]

Shares of Nvidia (NVDA), Advanced Micro Devices (AMD), Broadcom (AVGO), and other chipmakers were on the rise Friday, rebounding from recent losses, as analysts said the torrid rise in chip stocks this year on surging demand for artificial intelligence (AI) is likely nowhere near its peak. 

The iShares Semiconductor ETF (SOXX) was up more than 2% in afternoon trading Friday, recovering from losses Thursday, though the fund was still down about 7% from the start of the month after a few difficult weeks for chip stocks. 

Semiconductor stocks took a hit this month amid concerns about tightening trade restrictions and as investors rotated into small-cap stocks, expecting they could benefit from Federal Reserve rate cuts.

On Friday, the government reported that inflation moderated in June, reinforcing expectations of a rate cut in September on the heels of other encouraging economic data earlier in the month. 

However, analysts suggested the recent pressure …