In early 2026, the U.S. stock market showed resilience, largely supported by positive inflation reports. The December Consumer Price Index (CPI) indicated a 0.3% increase month-over-month and a 2.7% annual rise, consistent with expectations. On a core basis, inflation rose 0.2% monthly and 2.6% year-over-year, signifying the slowest annual pace since March 2021.
Amid stock market gains, concerns emerged over a U.S. military strike on Venezuelan President Maduro and a criminal investigation into Federal Reserve Chair Powell. Furthermore, President Trump proposed limiting credit card fees to 10%, potentially impacting companies like Capital One. Despite these challenges, semiconductor stocks like AMD and Intel are drawing attention, with AMD shares up nearly 80% in 2025, driven by strong demand in AI infrastructure. Intel also experienced a turnaround, more than doubling its share price as a result of domestic chip manufacturing initiatives and a partnership with Nvidia.
As the AI server market continues to expand, the semiconductor sector is positioned for significant growth. Global semiconductor manufacturing is expected to surge from $452 billion in 2021 to $971 billion by 2028, indicating strong future prospects for companies like AMD and Intel.
