Chip Stocks Set for Best Month in Decades

May 30, 2023 thejournalbiz

AI mania is pushing semiconductor stocks into their best month in more than 20 years, according to Dow Jones Market Data.

Tweet on chip surge amid AI hype

Chip Stocks Set for Best Month in 20 Years!

AI mania is pushing semiconductor stocks into their best month in more than 20 years, according to Dow Jones Market Data.#chips #Nvidia #StocksInFocus pic.twitter.com/RdJRySqjgn

— The_Journalbiz (@the_journalbiz) May 30, 2023

Factset chart on chip stocks

The PHLX Semiconductor Sector Index has gained 20.4% so far this month as of Tuesday morning. That’s on pace for the best monthly performance since November 2002, when the index advanced 26.6%.

Broadcom and Nvidia, the top two performers this morning within the S&P 500, are both top-10 components of the chip index.

The index has surged about 15% since Nvidia issued a blowout sales forecast last week, which is the best 3-day stretch since March 2020.

These Five Companies Are Leading Chip Stocks Upward

As an index of chip stocks is racing toward its best performance in decades, its components are benefiting across the board.

The PHLX Semiconductor Sector Index is up about 20% this month, with about 15% of that coming since Nvidia’s upbeat outlook for AI technology, issued last week, lifted its stock toward a $1 trillion market cap.

Since then—after Wednesday’s close, specifically—all 30 of the index’s components are in the green, according to Dow Jones Market Data. Half are up 10% or more.

*The leaders so far: Marvell Technology, Nvidia, Broadcom, Monolithic Power Systems, and Coherent, all up at least 20%.