Semiconductor stock performance

What happened: Semiconductor stocks surged, with the Direxion Daily Semiconductor Bull 3X ETF jumping 20% on June 18, 2026, driven by President Trump's announcement of an Intel-Apple semiconductor partnership. Individual stocks like ON Semiconductor, NXP Semiconductors, and Synopsys also saw positive momentum. Meanwhile, Taiwan Semiconductor Manufacturing Company (TSM) was highlighted as a relatively undervalued play, trading at 27x forward earnings despite strong growth prospects.

Market impact: The semiconductor sector broadly benefited from the positive news, with the VanEck Semiconductor ETF (SMH) and the Philadelphia Semiconductor Index (SOXX) posting gains despite a broader market selloff. The sector's megacap names led the rally, favoring market cap-weighted ETFs like SMH. Specific companies like ON Semiconductor and NXP Semiconductors saw their stock performance outpace the broader market.

What to watch next: Investors should monitor the upcoming earnings reports from key semiconductor companies, including ON Semiconductor (July 25) and NXP Semiconductors (August 3). Additionally, the evolution of the Intel-Apple partnership and any further developments in U.S. semiconductor policy will be crucial to watch.