Why Chip Stocks Bounced Higher on Monday

What a difference a week can make on the stock market.

This truism seemed to be very much in force for microchip stocks on Monday. After last week's sell-off, many got off to a roaring start with the new trading week. Asian powerhouse Taiwan Semiconductor Manufacturing (NYSE: TSM) rose by over 2% on the day, as did its busy U.S. peer (NASDAQ: AVGO). Lapping them both was chipmaking equipment specialist Lam Research (NASDAQ: LRCX), which posted a nearly 7% gain.

Whenever a sector or stock is hit by a widespread investor sell-off, discount hunters wait in the wings for a good time to buy on the cheap.

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Source Fool.com