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After being in the doldrums for nearly a month, as investors rode a wave of concern about the AI buildout, chip stocks hit a real purple patch again in April.
In March, Nasdaq’s PHLX Semiconductor Sector Index – which includes the 30 largest US-traded chip companies – saw a 6.3% decline. Last month, the story reversed, with the index rising 35.2% from the beginning of April to market close on Wednesday as investors poured into the sector.
Intel has been one of the standouts. The company had its best day since 1987 last Friday, with earnings topping estimates and issuing encouraging guidance. nvidia’s Market cap crossed $5 trillion ahead of its earnings, and AppleThe stock rose Thursday after it reported better-than-expected revenue growth in its most recent quarter and its guidance was better than expected.
Many Americans including Chip Darling amd And micronLike many of Europe’s leading semiconductor companies, it has also grown.
“The semiconductor tape we’ve seen this month has been nothing short of historic,” Bruce Bateman, chief analyst at Omdia, told me. “We’re talking about a winning streak not seen since the 1970s.”
Intel Xeon 6 processors are shown to CNBC at Intel’s Advanced Packaging Facility in Chandler, Arizona on November 17, 2025.
Tony Puyol
bounce
The surge in semiconductor stocks last month reflects a combination of new confidence in the AI infrastructure cycle, strong earnings commentary and demand broadening “beyond just the few obvious AI winners,” said David Miller, senior portfolio manager at Catalyst Funds.
Miller told me that in the US, the sentiment is supported by the belief that AI demand is translating into real revenue growth, which is pushing up earnings estimates.
Concerns seen over hyperscalers’ massive AI spending plans announced as early as 2026 There was a $1 trillion selloff in February, but investors have remained steadfast in their resolve in recent weeks.
“Continued positive news flow and earnings results from AI infrastructure players have allowed investors to gain a better level of comfort with the size of capital expenditures, turning sentiment positive,” said Michael Field, chief equity strategist at Morningstar.
Bob Savage, head of market macro strategy at BNY, told me that some of the surge is related to the Iran war, as chip orders have increased in anticipation of supply chain disruptions.
Ignoring geopolitics?
But, while the market is pricing in the “clean narrative” of growth, it is “ignoring a huge wall of physical reality,” Bateman told me.
He said the Iran war has also created serious obstacles, affecting the core of chip manufacturing.
The US data center buildout is reportedly seeing delays and shortages of key equipment such as transformers. Bateman said, “We’re not seeing a lack of interest; we’re seeing a lack of capacity.”
Other analysts are far more optimistic, putting their faith in the continued growth in computing demand – which is fueling those big AI infrastructure projects.
“If three things go right, the sector could still move forward,” Miller said. “Hyperscaler capex remains resilient, earnings estimates continue to rise, and investors remain confident that AI infrastructure spending is delivering real returns.”
latest updates
Anthropic is in talks with investors to raise funds at a valuation of $900 billiona person familiar with the matter Told CNBC.
Samsung Electronics reports more than eight-fold increase in first-quarter operating profit On Thursday, it set a new record and beat analysts’ estimates on explosive growth of its chip business.
A major data center company halted investment in AI infrastructure projects in the Middle East Iran amid war, its CEO told CNBC.
Defense Department is increasing its use Google’s gemini ai modelNearly two months after Anthropic was taken down, designating it as a supply chain risk, the Pentagon’s AI chief confirmed to CNBC.
Top researchers are jumping ship from Big Tech firms meta And Google will launch startup And massive funding is being raised in the process, as investors are placing big bets on the commercial potential of early-stage AI labs.
quote of the week
David Silver. Credit: Peter Catchpole.
And finally, some high words from the founder of a new AI startup.
declaration of ineffective intelligence Founder David Silver, a former top researcher at Google DeepMind, raised $1.1 billion at a $5.1 billion valuation just months after launching, saying the company aims to “surpass the greatest inventions in human history such as language, science, mathematics and technology.”
Big deal.
