The semiconductor sector is experiencing a rally following Advanced Micro Devices' (AMD) second quarter earnings beat, driven by strong AI chip sales. Angelo Zino, CFRA Research senior equity analyst joins Catalysts to discuss these market gains within the chip sector.

Zino observes that the chip space is undergoing its own rotation out of semiconductor and AI names, mirroring the broader tech market rotation. However, with AMD's earnings beat, he notes that fears about the sustainability of this momentum or the materialization of revenue from AI investments "is starting to ease."

With Nvidia's (NVDA) earnings results still some time away, questions are rising about whether the chip sector can maintain its momentum. Zino points out that catalysts can come not only from chip earnings but also from tech earnings and even analog plays like Texas Instruments (TXN). Nevertheless, he tells Yahoo Finance: "We think Nvidia's gonna post some great results. We think that's gonna be a catalyst for the space."

For more expert insight and the latest market action, click here to watch this full episode of Catalysts.

This post was written by Angel Smith