Advanced Micro Devices (AMD) led chip stocks higher on Friday after a report that China tariffs would exempt U.S. semiconductor companies that outsource manufacturing.

AI chipmakers Nvidia (NVDA) rose about 3%, while Advanced Micro Devices (AMD) jumped around 5%. In addition, Broadcom (AVGO) and Qualcomm (QCOM) climbed about 3%, each.

Earlier on Friday, it was reported that China's import tariffs on U.S. goods provide an exemption for U.S. semiconductor companies that outsource their manufacturing. Reportedly, U.S. companies such as Qualcomm (QCOM) and AMD, which outsource manufacturing to Taiwan Semiconductor Manufacturing (TSM), are exempted as China's regulators classify these chips as originating from Taiwan.

Shares of Taiwan Semiconductor Manufacturing (TSM) jumped about 3%. However, several chipmakers saw red. Texas Instruments (TXN) declined about 6%, and Intel (INTC) fell around 4%, and Micron (MU), GlobalFoundries (GFS), Analog Devices (ADI), and Lattice Semiconductor (LSCC) each fell nearly 2%. Marvell Technology (MRVL) dipped roughly 1%.

Meanwhile, chip equipment makers: Applied Materials (AMAT) soared around 4%, KLA (KLAC) and Dutch company ASML (ASML), each rose nearly 2%. Lam Research (LRCX) climbed about 1%.

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