Chip Stocks Rebound After Two-Day Skid; Tower Semiconductor Leads on Analyst Upgrade

Chip stocks rebounded Friday after a two-day decline. The Philadelphia semiconductor index (SOX) rose 1.7%, reaching its highest level in over a month. Tower Semiconductor surged 6% on a Mizuho initiation with an outperform rating and $300 target, citing silicon photonics foundry growth for AI data centers. Credo Technology jumped 8%, Qualcomm gained 5% on Snapdragon Summit enthusiasm, and AMD traded flat after BofA raised its price target to $720. Nvidia was named top pick in AI inference. The bounce follows sector weakness and reinforces AI demand narratives.