The PHLX Semiconductor Index recorded its longest streak ever with 18 consecutive gains as of Friday, largely fueled by Intel’s (INTC) stronger-than-expected quarterly results, which boosted the company’s stock by 24%. The iShares Semiconductor ETF (SOXX) has risen 47% year-to-date, outperforming broader indexes and rising over 1,000% in the past decade. The semiconductor sector has also benefited significantly from the boom in artificial intelligence, with major tech companies projected to spend $660 billion on AI initiatives this year, reflecting a 65% increase from 2025.
Intel recently announced a partnership with Elon Musk for its Terafab project, further enhancing its position in the market. In addition, NVIDIA’s (NVDA) $5 billion investment in Intel and Meta’s plans to purchase AMD chips, valued at over $100 billion, indicate substantial growth potential in the chip industry. The semiconductor sector’s revenues are expected to grow by about 57% in 2026, outpacing the overall tech sector, as demand for chips remains high.
Recently, the world’s largest contract chipmaker, Taiwan Semiconductor Manufacturing Company (TSMC), saw a record stock high following a 58% increase in Q1 earnings, driven by demand related to AI applications. The rise of inference and agentic AI is intensifying demand for CPU chips, presenting a pivotal opportunity for semiconductor stocks moving forward.
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