Chip stocks bounce up to 8% as US stock futures recover after Thursday’s stock market crash - Jefferies says sell-off was ‘reactionary, not a reset’

Dow Jones futures, Nasdaq and S&P 500 today: Chip stocks staged a sharp recovery before Friday's stock market opening bell after Thursday's technology led sell-off that had sent semiconductor shares tumbling.

Nvidia, AMD, Intel, Broadcom & Micron Technology were among companies bouncing back. Even smaller semiconductor equipment makers also posted strong gains.

Aehr Test Systems, Camtek and Cohu posted strong gains, rising 10.35%, 8.59% and 8.31%, respectively. All three companies are involved in different stages of semiconductor manufacturing, from testing chip reliability to inspecting & packaging advanced processors, as per a Simply Wall St report.


The rebound followed a brutal session on Wall Street. The Philadelphia Semiconductor Index plunged 12.2% on Thursday, its biggest one day decline since April 2025. But Investment banking company Jefferies offered a more measured assessment of the sell-off, describing it as "reactionary, not a fundamental reset," according to Reuters report.

Dow Jones Futures, Nasdaq and S&P 500 today: Chip Stocks Recover After Thursday's Semiconductor Sell Off

Semiconductor shares recovered some of their losses in premarket trading on Friday. Nvidia gained 3.6%, AMD, Intel, Broadcom & Micron Technology advanced between 5% and 8.3%.

Broader technology market also showed signs of stabilisation. As Nasdaq 100 futures rose 1.48%, S&P 500 futures gained 0.39%. But Dow futures moved in opposite direction, falling 0.66%.

Thursday's losses had been particularly severe. Philadelphia Semiconductor Index dropped 12.2%, Nasdaq Composite fell 5.5%, entering correction territory and heading towards a fourth consecutive weekly decline.

Investors were weighing concerns about artificial intelligence spending, inflation and the possibility of tighter restrictions on data center development following the win of Democrats in US midterm elections.

Stock Futures Today: Aehr, Camtek and Cohu Stocks Jump as AI Chip Equipment Demand Builds

The recovery was not limited to the biggest semiconductor companies. Three equipment makers involved in advanced chip testing, inspection and packaging also recorded notable gains.

A Simply Wall St. report pointed to projected capital spending of nearly $28 billion on these tools and customers looking for scarce manufacturing capacity. Advanced packaging has become an important part of semiconductor production as manufacturers work with increasingly complex AI chips.

Aehr Test Systems Stock Rises 10.35%

Aehr Test Systems gained 10.35%. The company supplies wafer-level and package-level burn-in equipment used to test semiconductor reliability.

Its FOX wafer-level and Sonoma package-level platforms are tied to demand for AI processors and data centers. Aehr's market capitalisation is reportedly at approximately $2 billion and cited around $50 million in revenue from the relevant product line.

Camtek Stock Advances 8.59% on AI Packaging Exposure

Camtek shares climbed 8.59%. The company develops inspection & metrology systems for advanced semiconductor packaging and 3D structures. Also supplying foundries, outsourced semiconductor assembly and test providers, and chip manufacturers.

Its equipment is used in manufacturing processes involving chiplets, high-bandwidth memory (HBM) and AI data center applications. Its platforms include Hawk, Eagle G5 and MicroProf.

One of the report's key figures was Camtek's 2026 year to date order book. More than $600 million in orders had been recorded, with roughly 80% tied to AI and high performance computing applications. These orders were scheduled for delivery through 2026 and into 2027.

Camtek is valued at approximately $4.3 billion.

Cohu Stock Gains 8.31% as Semiconductor Testing Draws Attention

Cohu advanced 8.31%. The company supplies semiconductor test and inspection equipment, including solutions used to check complex chips and power devices before they leave the factory.

Its exposure includes AI infrastructure, GPUs, HBM and display drivers and Cohu has also been introducing configurable handler platforms and testing solutions aimed at the changing requirements of semiconductor manufacturing.

As per Simply Wall St. report, the firm generated approximately $569 million in revenue from semiconductor test and inspection equipment and related services. Its market capitalisation was at around $1.7 billion.

Jefferies Says Stock Market Crash Yesterday Was: 'Reactionary, Not a Reset'

Despite the scale of Thursday's losses, Jefferies doesn't see the decline as evidence of a fundamental change in AI investment outlook.

Equity strategist Jane Gibbons said, "We view Thursday's selloff as reactionary, not a fundamental reset, driven by a collision of concerns around AI spend, policy and inflation," as quoted by Reuters.

Gibbons' assessment comes as investors try to distinguish between a temporary bout of market pressure and a more lasting change in the semiconductor industry's growth prospects.

Friday's recovery offered some relief to chipmakers & equipment suppliers after the previous session's steep losses. However, the concerns surrounding AI investment and data center expansion remain central to the sector's outlook.