• Global technology and chip stocks rallied on Monday after the U.S. and China agreed to pause most tariffs on each other's goods.
• Tech firms with exposure to China — including Amazon and Apple — rose sharply.
• Major chip stocks including Nvidia and TSMC also jumped.

Global technology and chip stocks rallied on Monday after the U.S. and China most tariffs on each other's goods.

Technology stocks — such as semiconductor firms and smartphone makers — have been hit hard as trade tensions between the world's two largest economies threatened to disrupt supply chains and hurt some of the biggest U.S. businesses.

But investors breathed a sigh of relief after talks between the U.S. and China over the weekend yielded a temporary pause in "reciprocal" tariffs.

In the U.S., , which still faces a number of restrictions on the chips it is allowed to ship to China, was around 4% higher in premarket trade, while was up 5%. was also around 5% higher, along with .

Other companies in the semiconductor supply chain also jumped. , which last week postponed a previously scheduled investor day due to macroeconomic uncertainty, surged 7.5% in premarket trade.

, the world's largest chipmaker, saw its U.S.-listed shares jump around 4% in the premarket. TSMC's Taiwan-listed stock closed before the tariff announcement.

In Europe, , a supplier of critical machinery required to manufacture the most advanced chips, rallied 4.5% in early trade. was also sharply higher.

Semiconductors and some electronics received an exemption from President Donald Trump's reciprocal tariffs last month, but the U.S. signaled the reprieve was temporary and that these products could still be in line for special duties.

Investors have been concerned about the impact on major tech stocks, especially those with exposure to China such as Apple and Amazon, whose shares have been under pressure this year.

, which still , said during its earnings report this month that it expects tariffs will add . Apple shares were more than 7% higher.

was up more than 8% in premarket trade Monday. Many sellers on Amazon rely on Chinese products.

U.S.-listed Chinese tech stocks also surged. Chinese e-commerce giants and were higher, alongside internet firm .

"With US/China clearly on an accelerated path for a broader deal we believe new highs for the market and tech stocks are now on the table in 2025 as investors will likely focus on the next steps in these trade discussions which will happen over the coming months," Daniel Ives, global head of technology research at Wedbush Securities, said in a note on Monday.

"This morning is a huge win for the bulls and a best case scenario post this weekend in our view."