AI chip companies, including Nvidia (NASDAQ:NVDA), Advanced Micro Devices (NASDAQ:AMD), Broadcom (NASDAQ:AVGO), Marvell Technology (NASDAQ:MRVL), and Super Micro Computer (NASDAQ:SMCI), had a rollercoaster week so far.

Ranging from the U.S. government’s trade policies, quarterly earnings of key semiconductor suppliers and more, while investors keep evaluating Washington’s tariff policies and sustained AI frenzy.

This week, Nvidia, Broadcom, AMD, and Supermicro gained 2-11% compared to the PHLX Semiconductor Index’s less than 1% gains. Marvell lost 2% this week.

This week’s market surge was driven by two key developments: reports of the Trump administration’s $70 billion AI and energy investment plan and the U.S. lifting specific chip export restrictions to China.

Also Read: Why Nvidia’s China Comeback Could Propel Its Stock To New Heights

Semiconductor Policies

President Trump is set to unveil this initiative near Pittsburgh, which focuses on AI data centers, power generation, grid upgrades, and new workforce training. The plan aims to strengthen U.S. leadership in AI by attracting private investment, simplifying regulations, and fast-tracking project permits.

Senator David McCormick will host the event at Carnegie Mellon University. It will gather top executives from major companies, including BlackRock and Palantir. Blackstone President Jon Gray will also announce a $25 billion investment in data center and energy infrastructure expansion.

Reportedly, Nvidia has recently been allowed by the U.S. government to resume sales to China of its H20 AI chip. This is particularly significant because Nvidia took a $4.5 billion charge in the first quarter of this year due to the export ban on its H20 products to China, which was imposed on April 9.

Key Semiconductor Earnings

Key Nvidia supplier and contract chipmaker Taiwan Semiconductor Manufacturing (NYSE:TSM) reported second-quarter results on Thursday that exceeded expectations, driven by strong global demand for advanced chips crucial for AI applications.

The stock gained close to 4% based on the results. The company posted net sales of $30.07 billion, up 38.6% year-over-year, and net income of $398.27 billion New Taiwanese dollars, reflecting a 60.7% increase from the previous year.

The company raised its third-quarter guidance, projecting revenue between $31.8 billion and $33.0 billion, surpassing analysts’ estimates. Taiwan Semiconductor’s margin growth was impressive, with gross margins expanding by 540 basis points to 58.6% and operating margins rising by 710 basis points to 49.6%.

Strong demand for cutting-edge processor technologies, including 3-nm, 5-nm, and 7-nm chips, continues to drive the company’s growth.

However, chip equipment maker ASML Holding (NASDAQ:ASML) plunged over 8% Wednesday after it warned investors on its second-quarter results that the growth outlook for 2026 is uncertain due to rising macroeconomic and geopolitical challenges.

CEO Christophe Fouquet highlighted growing uncertainties, particularly from trade tensions and tariffs, although the fundamentals of its key AI customers remain strong.

Despite these concerns, ASML posted strong bookings of $6.4 billion, exceeding consensus estimates of $5.6 billion. However, its third-quarter sales forecast, ranging from $8.6 billion-$9.2 billion, missed analyst expectations.

The company reported $8.9 billion in sales for second-quarter, surpassing estimates of $8.7 billion, with a profit of $2.66 billion, ahead of the expected $2.37 billion.

Recent Key Developments

Let’s look at some of the recent significant developments for the semiconductor companies this week.

Broadcom unveiled its new Tomahawk Ultra chip on Tuesday, designed to accelerate AI data processing by linking hundreds of chips in data centers. The chip directly competes with Nvidia’s NVLink Switch, but Broadcom’s offering can connect four times as many chips, using a faster version of Ethernet instead of a proprietary protocol.

While both chips aim to facilitate “scale-up” computing, Broadcom adapted the Tomahawk Ultra for AI applications, showcasing its potential as a viable alternative to Nvidia’s powerful GPUs.

Super Micro Computer announced on Wednesday that it has started shipping new 4-socket servers designed to support large-scale database and enterprise applications.

These servers, powered by the latest Intel (NASDAQ:INTC) Xeon processors, are optimized for demanding workloads like in-memory databases and scientific simulations, offering improved performance compared to previous models.

NVDA Price Action: NVDA stock is trading higher by 1.31% to $173.58 at last check Thursday.

Read Next:

• Cisco Is Quietly Beating The AI Hype--Should Investors Pay Closer Attention?

Photo via Shutterstock