Shares of companies in the semiconductor space, including NVIDIA Corp (NASDAQ:NVDA) and Micron Technology Inc (NASDAQ:MU), are trading higher Wednesday, rebounding from recent weakness amid a rise in yields and concerns over fed tapering, which has caused volatility in the sector.
The December meeting summary showed that Fed members are ready to start raising interest rates and tapering bond buying. The Fed also signaled that it's prepared to engage in conversations about reducing holdings of Treasurys and mortgage-backed securities.
Those conversations will likely ramp up in this week’s meeting. The FOMC decision is due at 2 p.m. ET today and will be followed by a press conference with Fed chairman Jerome Powell.
Stronger-than-expected financial results from Texas Instruments Inc (NASDAQ:TXN) have also helped lift the chip sector.
Texas Instruments reported quarterly adjusted earnings of $2.27 per share, which beat the $1.94 estimate. The company reported quarterly revenue of $4.83 billion, which beat the estimate of $4.43 billion and represented a 19% increase year-over-year.
See Also: Why Texas Instruments Stock Is Trading Higher Today
NVDA, MU Price Action: At publication time, Nvidia was 3.8% at $231.77 and Micron was up 3.42% at $83.46.
Photo: courtesy of Nvidia.
