Applied Materials and KLA Corporation shares jumped in afternoon trading as semiconductor stocks rebounded on dip buying, after a report that China may let major tech firms buy a limited quantity of Nvidia's H200 AI processors. KLA is now up 80.9% for the year.
Applied Materials jumped 5% and KLA Corporation rose 5.3% in the afternoon session as chip stocks recovered following a recent selloff. Both are semiconductor manufacturing companies, and the bounce came as buyers stepped back into a sector that several sessions of profit-taking had dragged down.
What triggered the rebound
The reversal followed a report from The Information that Chinese authorities recently told top technology companies — including Alibaba, ByteDance, and DeepSeek — they may soon receive permission to buy a limited quantity, capped under 200,000 units, of Nvidia's H200 AI processors for model training. That prospect of renewed Chinese demand lifted the outlook for chip stocks.
Supporting the improved sentiment, reports revealed that SK Hynix's $24.5 billion U.S. ADR offering was oversubscribed by more than seven times, a sign that institutional appetite for AI memory chips remains robust.
KLA's volatile year
KLA's shares are highly volatile and have made 26 moves greater than 5% over the last year, so the report characterized the day's move as meaningful but not a fundamental shift in how the market views the business. The previous big move came two days earlier, when the stock dropped 8.4% after Samsung's record quarterly profit triggered a sell-the-news reaction.
Risks remain ahead. The report noted SK Hynix's roughly $28 billion Nasdaq debut could pull institutional capital from peers such as Micron, while heavy insider selling and Michael Burry's disclosed short position on Micron added overhangs.
KLA is up 80.9% since the start of the year, and at $230.59 per share it trades close to its 52-week high of $241.16 from June 2026.
Source: TradingView
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