Chip Stocks Surge As Trump Pauses Tariffs For US Allies, Targets China With 125% Duties

Semiconductor stocks such as Arm Holdings ARM, NVIDIA inc. NVDA and Broadcom Inc. AVGO are trading higher Wednesday after President Donald Trump announced a 90-day pause on new tariffs for countries that have not retaliated against U.S. trade measures.

What To Know: The broader tech sector rallied in sync, with AMD, Microsoft, Apple, Meta and Amazon all moving higher as the market digested the policy shift. Trump's new approach — which singles out China with a steep 125% tariff while easing up on U.S. allies—was seen as a targeted realignment rather than an across-the-board escalation, giving investors more clarity around future trade impacts.

Treasury Secretary Scott Bessent emphasized that the new 10% reciprocal tariffs for allied countries would act as a temporary floor, adding a degree of near-term certainty for markets. He framed the policy as a correction to long-standing imbalances, calling China's trade position "an own goal." The move marks a sharp turn from recent blanket tariff threats and was interpreted by Wall Street as a bullish development for U.S.-based chipmakers with broad global exposure.

Price Actions: NVIDIA shares closed Wednesday up 18.72% at $114.33, Broadcom shares jumped 18.66% to $185.15 and Arm Holdings shares were up 24.20% to $106.59, according to Benzinga Pro.