Onsemi ( ON ) shares surged Tuesday as the semiconductor firm’s CEO said he feels “good about the second half,” anticipating improving demand in several key markets.

The stock added 11% to close at just over $47. The gains came amid a broader rally for chip stocks as investors awaited new developments in trade talks. (Read Investopedia 's full coverage of today's trading here .) Despite Tuesday’s surge, shares of Onsemi have lost roughly one-quarter of their value since the start of the year.

CEO Hassan El-Khoury told attendees at a tech conference Tuesday that the company has seen signs of recovery in the industrial market, its second-largest, and expects auto demand to bottom in the second quarter before rebounding, with growth boosted by the company’s success in supplying chips for electric vehicle manufacturers in China.

The company will "benefit from a broad-based recovery based on the signs that we see even for the second half of this year,” El-Khoury said.

Onsemi last month reported first-quarter revenue that fell 22% year-over-year to $1.45 billion and warned about a “challenging macroeconomic environment,” sending shares tumbling. Today's climb has the stock back at levels last seen in March.

Read the original article on Investopedia