Overview
- Powered by AI demand, the Philadelphia Semiconductor Index rose more than 50% in about 25 trading days through early May, its strongest run since March 2000.
- SOXX, the iShares Semiconductor ETF, logged a 37% gain in April 2026 after a near-record 16-day winning streak that pushed the fund to fresh highs.
- AI workloads now need CPUs to orchestrate GPUs and large pools of high-bandwidth memory, pushing hyperscalers to bid up scarce DRAM and HBM supply.
- Gains now stretch across the global supply chain, lifting U.S. designers, Taiwan foundries, South Korean memory leaders, and Japan equipment makers.
- Signs of froth are building, with strategist Marko Kolanovic urging caution, Michael Burry buying puts on chip ETFs, and a $CHIP token debuting on April 21 with a fully diluted value above $300 million.