What happened Shares of semiconductor stocks ASML Holding (NASDAQ: ASML), Applied Materials (NASDAQ: AMAT), and Ambarella (NASDAQ: AMBA) rallied in July, up 21.8%, 16.5%, and 32.2%, respectively, according to data from S&P Global Market Intelligence. In July, commodity inflation showed signs of easing, and market participants anticipated an end or at least slowing of Federal Reserve interest rate hikes. Then toward the end of the month, the U.S. Congress passed the CHIPS Act, which has the potential to greatly benefit U.S. foundries and equipment makers, adding fuel to the rally in ASML and Applied Materials.