TradingKey Daily Market Briefing: Chip Stocks Recover, Broadcom-Apple Partnership Ignites AI Hardware Market, Samsung Earnings Preview Beats Profit Expectations

Tracking Market Trends

TradingKey - On July 6, Eastern Time, US stocks regained strength after the Independence Day holiday weekend, with rebounds in AI and chip stocks serving as the core driving force behind the market's upward movement. Investors returned to purchasing semiconductors, AI infrastructure, and mega-cap tech stocks, while starting to prepare for the new corporate earnings season kicking off this week.

At the close, the Dow Jones Industrial Average rose 0.29% to 53,061.30; the S&P 500 Index climbed 0.72% to 7,537.43; and the Nasdaq Composite Index gained 1.12% to 26,121.16.

In terms of sectors and individual stocks, chip stocks experienced a notable recovery. Broadcom ( AVGO) rose 3.73%, becoming a significant force driving the rebound in the semiconductor sector, primarily boosted by the extension of its custom chip supply agreement with Apple ( AAPL ). AMD ( AMD) surged 6.61%, Nvidia ( NVDA) gained slightly, and Micron Technology ( MU) also recorded a moderate rebound.

In commodity markets, oil prices remained volatile at low levels. Brent crude closed at $72.00, while WTI ( USOIL) crude closed at $68.61, largely returning to levels seen before the Iran conflict. OPEC+ continued to raise production targets, Saudi Arabia cut its official selling prices for Asian buyers, and shipping in the Strait of Hormuz gradually resumed, further cooling market concerns over supply disruptions. Short-term oil trading logic is shifting back from geopolitical risk premiums to supply and demand fundamentals.

In precious metals, gold slid slightly. Spot gold ( XAUUSD) hovered around $4,152, entering a consolidation phase after surging last week on the back of cooling US employment data. Currently, the core support for gold still stems from the market's downward revision of Federal Reserve rate hike expectations. However, if this week's Fed meeting minutes release hawkish signals, or if the US dollar and Treasury yields rise again, gold may face short-term profit-taking pressure.

In the crypto market, Bitcoin ( BTC) sustained its recovery, currently trading around $64,000; Ethereum ( ETH) rebounded to around $1,798, continuing to underperform Bitcoin. The recovery in risk appetite within US equities has provided some support for crypto assets, though market trading volume has not expanded significantly. In the short term, whether Bitcoin can continue to move upward still depends on ETF capital flows, the trajectory of the US dollar, and whether new catalysts emerge from US crypto regulatory progress.

Market News

Broadcom and Apple extend custom chip partnership to 2031. Broadcom announced that it will expand its collaboration with Apple, continuing to develop and supply custom chips for the tech giant, with the agreement extended to 2031. This agreement eases market concerns that Apple might accelerate its in-house R&D to replace Broadcom components in the short term. It also demonstrates that the importance of the custom chip supply chain continues to rise, driven by demand for AI and high-end consumer electronics. Apple accounts for approximately 20% of Broadcom's annual revenue, meaning this long-term agreement supports Broadcom's earnings visibility and valuation sentiment.

Samsung Electronics releases strong Q2 earnings guidance. Samsung expects its second-quarter operating profit to surge 19-fold year-on-year to 89.4 trillion won, breaking records for the third consecutive quarter and beating market expectations. The company's revenue is projected to increase 129% year-on-year to 171 trillion won. AI demand is spreading from HBM to conventional DRAM and NAND, driving memory chip prices higher.

Microsoft ( MSFT) announces 4,800 layoffs and a restructure of its Xbox business. Microsoft stated it will cut approximately 4,800 jobs, representing about 2.1% of its global workforce, with 3,200 layoffs occurring in its Xbox gaming division alongside the spinoff of some game studios. The company emphasized that these layoffs are not a direct result of AI replacing jobs. However, the market is highly focused on whether Microsoft is controlling labor costs to maintain profit margins amid rising capital expenditures for AI data centers and cloud computing. The news has also prompted investors to reassess the return-on-investment cycle for AI spending by big tech companies.

SK Hynix initiates plans for a US listing. SK Hynix has initiated plans for a US listing valued at approximately $28 billion, aiming to debut on the Nasdaq via ADRs to expand its international investor base and capture capital market attention amid the global AI memory boom. As a core supplier of HBM and AI memory, SK Hynix has seen strong stock performance this year. This US listing will further increase global capital participation in the South Korean semiconductor supply chain and may intensify capital diversion and valuation re-ratings within the US AI chip sector.

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