Broadcom Inc. AVGO saw its stock price spike almost 12% at last check Wednesday, trading at $160.68 per shape.

This movement is part of a broader rally in semiconductor, hardware, storage and chip-related stocks, driven by strong quarterly earnings from Advanced Micro Devices Inc. AMD and positive developments regarding U.S. export regulations.

Why It’s Moving: Shares of Broadcom and other semiconductor companies gained Wednesday, according to Benzinga Pro.

AMD, which reported robust second-quarter earnings, displayed a strong performance with revenue of $5.84 billion and earnings per share of 69 cents, exceeding analysts’ expectations.

Additionally, the semiconductor sector received a boost from reports of a new Biden administration rule on foreign chip equipment exports to China. This rule is expected to exempt key allies such as Japan, the Netherlands, and South Korea, mitigating potential negative impacts.

What Else: The Biden administration’s forthcoming regulation will extend U.S. authority to restrict semiconductor manufacturing equipment exports to China but will exempt shipments from Japan, the Netherlands and South Korea. This news alleviated fears of a broader impact on the global semiconductor supply chain.

In addition to the regulatory news, semiconductor stocks experienced their strongest session since February, with ETFs like the iShares Semiconductor ETF SOXX and the VanEck Semiconductor ETF SMH surging by 5.0% and 6.1%, respectively. The rally was led by companies such as NVIDIA Corporation NVDA (up 11.84%), United Microelectronics Corporation UMC (up 8.95%) and Micron Technology, Inc. MU (up 7.59%).

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