Chipmaking stocks rallied at the start of 2026 as investors returned to the artificial intelligence-driven semiconductor sector following another strong year of gains.

The move came after the industry recorded its third consecutive winning year, supported by sustained growth in AI-related demand.

ASML and Micron Lead Early Semiconductor Gains

Micron Technology jumped 10%, while Dutch chip equipment maker ASML rose 9% to open the new trading year.

Lam Research and Intel gained more than 6% each, and Marvell Technology advanced about 5%.

Nvidia and AMD Extend Strong 2025 Performance

Advanced Micro Devices climbed around 4%, while Nvidia gained roughly 1% in early trading.

In 2025, AMD surged 77%, while Nvidia added 39%, reflecting continued investor interest in leading AI chipmakers.

AI Buildout Supports Chip Sector Growth

Chip stocks benefited throughout 2025 from the ongoing AI buildout, as hyperscalers expanded spending to meet steady data center demand.

Companies such as Amazon and Google invested heavily to support large-scale computing needs.

Investor Concerns Emerge Over AI Valuations

Despite the gains, concerns have grown over the sustainability of the AI-driven rally. Investors have raised the prospect of an AI bubble as valuations continue to climb.

In November, Michael Burry of “Big Short” fame disclosed short positions in Nvidia and Palantir and later criticized hyperscalers for artificially boosting earnings.

Semiconductor ETF Extends Multi-Year Rally

The rally lifted the VanEck Semiconductor ETF by about 4%, adding to its nearly 49% gain in 2025.

The ETF has posted gains for three straight years and recorded its strongest performance in 2023, when it rose more than 72%.

PHOTO: UNSPLASH

This article was created with AI assistance.