Chip stocks soar in ‘historic’ month

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Semiconductor stocks once again hit the purple tier in April after a month of stagnation as investors rode a wave of fears about the rise of AI.

In March, the Nasdaq PHLX Semiconductor Sector Index, made up of the 30 largest U.S.-listed semiconductor companies, fell 6.3%. The situation reversed last month, with the index soaring 35.2% since early April as of Wednesday’s market close as investors flooded into the sector.

Intel is one of the standout companies. The company had its best day since 1987 last Friday on the back of better-than-expected profits and a positive outlook announced. Nvidia’s Market capitalization exceeds the $5 trillion mark, exceeding profits appleThe company’s stock rose Thursday after the company posted better-than-expected sales growth in its most recent quarter and also beat expectations.

Many US chip enthusiasts AMD and micronseveral of Europe’s largest semiconductor companies soared as well.

“The semiconductor tape we’ve seen this month is truly historic,” Bruce Bateman, principal analyst at Omdia, told me. “We’re talking about a winning streak not seen since the 1970s.”

David Miller, senior portfolio manager at Catalyst Funds, said the rally in semiconductor stocks over the past month reflects a combination of renewed confidence in the AI ​​infrastructure cycle, stronger earnings commentary and a sense that demand is growing “beyond some clear AI winners.”

In the U.S., sentiment is supported by the belief that AI demand is turning into real revenue growth, leading to higher profit estimates, Miller said.

Investors have hardened their resolve in recent weeks, after dropping $1 trillion in February on concerns about hyperscalers’ massive AI spending plans announced in early 2026.

“Sentiment is turning positive as the continued flow of positive news and earnings results from AI infrastructure companies gives investors more confidence in the scale of capital spending,” said Michael Field, chief equity strategist at Morningstar.

Bob Savage, head of market macro strategy at BNY, said part of the surge is related to the Iran war, as orders for chips have increased in anticipation of supply chain disruptions.

But while markets are pricing in a “pretty story” of growth, Bateman told me, “they’re overlooking a huge wall of physical reality.”

The Iran war is also creating a significant bottleneck, which is hitting the core of chip manufacturing, he added.

Exports of helium, a key raw material for chipmaking and other manufacturing processes, have already been sharply reduced by the fighting, and some European companies are facing delays in semiconductor deliveries from Asia due to flight path disruptions.

Data center construction in the United States is also reportedly experiencing delays and shortages of major equipment such as transformers. “It’s not a lack of interest, it’s a lack of capacity,” Bateman said.

Other analysts are far more bullish, believing that computing demand will continue to grow and fuel large-scale AI infrastructure projects.

“If three things hold true, this sector could move higher,” Miller said. “Hyperscaler capex remains resilient, revenue forecasts continue to rise, and investors remain confident that spending on AI infrastructure is generating substantial returns.”

Antropic is in talks with investors to raise money at a valuation of $900 billion, a person familiar with the matter told CNBC.

Samsung Electronics on Thursday reported that its first-quarter operating profit rose more than eight times, setting a new record and beating analysts’ expectations for explosive growth in its chip business.

A major data center company has paused investment in AI infrastructure projects in the Middle East amid the Iran war, the company’s CEO told CNBC.

The Department of Defense is expanding its use. Google The Gemini AI model was confirmed to CNBC by the Pentagon’s AI chief, about two months after Anthropic was removed after it was designated as a supply chain risk.

Top researchers are jumping ship from big tech companies like meta With investors betting big on the commercial potential of early-stage AI labs, Google and Google plan to launch startups and raise huge amounts of funding in the process.

And finally, some pretty lofty quotes from the founders of new AI startups.

When Ineffable Intelligence announced $1.1 billion in funding at a $5.1 billion valuation just months after its founding, founder David Silver, a former top researcher at Google DeepMind, said the company aims to “transcend human history’s greatest inventions in language, science, mathematics, and technology.”

Big story.