After a period of stagnation driven by investor anxiety over AI infrastructure expansion, semiconductor stocks have experienced a significant resurgence in April.

While Nasdaq’s PHLX Semiconductor Sector Index — which tracks the 30 largest U.S.-traded chip firms — dropped 6.3% in March, the trend reversed last month. The index climbed 35.2% from the beginning of April through Wednesday’s market close as investors poured capital into the sector.

Intel has been a notable performer. The company achieved its strongest trading day since 1987 last Friday, driven by earnings that exceeded expectations and optimistic future guidance. Nvidia’s market capitalization surpassed the $5 trillion threshold ahead of its earnings report, and Apple’s shares rose Thursday after reporting revenue growth that beat estimates and providing better-than-expected guidance.

Many U.S. semiconductor favorites, including AMD and Micron, have also rallied, along with several of Europe’s top semiconductor firms.

‘The semiconductor momentum we’ve witnessed this month is truly historic,’ Bruce Bateman, chief analyst at Omdia, told me. ‘We’re discussing winning streaks unmatched since the 1970s.’

The Rally

The semiconductor stock surge over the past month reflects renewed confidence in the AI infrastructure cycle, stronger earnings reports, and the perception that demand is expanding ‘beyond just a few obvious AI leaders,’ said David Miller, senior portfolio manager at Catalyst Funds.

In the U.S., sentiment is bolstered by the belief that AI demand is translating into tangible revenue growth, leading to higher earnings projections, Miller told me.

Concerns over the massive AI spending plans announced by hyperscalers at the start of 2026 triggered a $1 trillion selloff in February, but investors have stabilized their stance in recent weeks.

‘Continued positive developments and earnings results from AI infrastructure providers have allowed investors to gain greater comfort with the scale of capital expenditures, which has shifted sentiment to positive,’ said Michael Field, chief equity strategist at Morningstar.

Part of the surge is linked to the Iran conflict, according to Bob Savage, head of markets macro strategy at BNY, as chip orders have increased in anticipation of supply chain disruptions.

Overlooking Geopolitical Risks?

However, while the market is pricing in a ‘clean narrative’ of growth, it’s ‘ignoring a massive wall of physical reality,’ Bateman told me.

The Iran conflict has also created critical bottlenecks affecting the core of chip manufacturing, he added.

Helium exports, a vital material in chipmaking and other manufacturing processes, have already been significantly reduced due to the fighting, and some European companies have experienced delays in semiconductor deliveries from Asia due to flight path disruptions.

The U.S. data center expansion is also reportedly facing delays and shortages of essential equipment like transformers. ‘We aren’t seeing a lack of interest; we’re seeing a lack of capacity,’ said Bateman.

Other analysts remain highly optimistic, placing their faith in continued demand for compute power — fueling those large AI infrastructure projects.

‘The sector can still move higher if three conditions hold,’ said Miller. ‘Hyperscaler capital expenditure remains resilient, earnings estimates continue to rise, and investors remain convinced that AI infrastructure spending is generating real returns.’

Latest Updates

Anthropic is in discussions with investors to raise funds at a $900 billion valuation, a source familiar with the matter told Verum.

Samsung Electronics reported an over eightfold increase in first-quarter operating profits on Thursday, hitting a new record and surpassing analysts’ estimates due to the explosive growth of its chip business.

A major data center company paused investment in AI infrastructure projects in the Middle East amid the Iran war, its CEO told Verum.

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

Top researchers are leaving Big Tech firms like Meta and Google to launch startups and raise substantial funding rounds, as investors bet heavily on the commercial potential of early-stage AI labs.

Quote of the Week

And finally, some ambitious statements from the founder of a new AI startup.

Announcing Ineffable Intelligence’s $1.1 billion raise at a $5.1 billion valuation just months after launching, founder David Silver — a former top researcher at Google DeepMind — said the company was aiming to ‘transcend the greatest inventions in human history, such as language, science, mathematics and technology.’

Big claims.

On Friday, the Department of Defense’s Chief Technology Officer, Emil Michael, stated that Anthropic remains classified as a supply chain threat, yet emphasized that Mythos, the firm’s AI model equipped with sophisticated cyber features, represents a distinct national security consideration. «The Mythos situation being addressed across the federal government, not solely within the Department of Defense, is a unique national security moment requiring us to fortify our networks, given the model’s specific ability to identify and address cyber vulnerabilities,» Michael explained during an appearance on CNBC’s «Squawk Box.»

These remarks follow a public dispute earlier this year between the DOD and Anthropic, where the Department labeled Anthropic a supply chain risk, implying its technology poses a threat to U.S. national security, after negotiations regarding the use of Anthropic’s models within the agency broke down.

Due to this supply chain risk designation, defense contractors must confirm they do not utilize Anthropic’s Claude models in their military-related projects. In March, Anthropic filed a lawsuit against the Trump administration to overturn the Pentagon’s blacklisting.

It remains unclear how the DOD could employ Anthropic’s Mythos model without breaching the supply chain risk designation.

Michael noted on Friday that the DOD still requires safeguards, which «are negotiable depending on the terms established with all companies, as they hold varying perspectives on this matter.»

On Friday, the DOD revealed it has secured agreements with seven AI firms to deploy their technology across the agency’s classified networks for «lawful operational use.» These companies include Google, OpenAI, Nvidia, Microsoft, Amazon Web Services, SpaceX (which has merged with Elon Musk’s xAI), and Reflection, a startup focused on open-weight models.

OpenAI announced a deal with the Pentagon hours after Defense Secretary Pete Hegseth designated Anthropic a supply chain risk in late February. OpenAI CEO Sam Altman later acknowledged on X that the timing «looked opportunistic and sloppy.»

Michael’s Friday comments indicate that Mythos has complicated the DOD’s attempts to distance itself from Anthropic.

Earlier this month, Anthropic’s CEO Dario Amodei met with senior Trump administration officials at the White House to discuss the model, with both sides describing the conversation as «productive.»

After the meeting, President Donald Trump told CNBC that «it’s possible» a deal will be reached between Anthropic and the DOD. He stated the company is «very smart» and could «be of great use.»

Despite the supply chain risk designation, the DOD has reportedly used Anthropic’s models to support military operations in the war in Iran. According to Axios, the National Security Agency, which falls under the DOD, is utilizing Mythos.

«From a national security standpoint, you always have to evaluate these factors,» Michael said Friday. «NSA and Commerce assess all frontier models, including Chinese frontier models, to understand their capabilities at the edge.»

Anthropic’s lawsuits against the Trump administration in San Francisco and Washington, D.C., remain ongoing.

A progressive faction within Delaware’s Democratic Party is backing primary challengers against six sitting Democratic state legislators who advocated for a revision to the state’s corporate regulations that advantages top executives and ultra-wealthy individuals, including Elon Musk and Mark Zuckerberg, who have encountered shareholder lawsuits in Delaware.

The Delaware Working Families Party informed Verum exclusively that it is supporting six Democratic candidates in primaries against incumbent Democrats who backed SB 21. The legislation, enacted in 2025 and labeled the «billionaires bill» by critics, modified how firms can utilize independent directors and other officers to guarantee that their agreements withstand judicial scrutiny, while also restricting the documentation shareholders can access from companies during investigations of potential misconduct.

Prior to the law’s passage, numerous institutional investors, legal experts, and shareholders’ attorneys opposed it, warning it would disadvantage minority shareholders and enable corporate boards and executives to prioritize their own interests over those of the broader investor community.

Musk, whose $56 billion compensation package faced legal uncertainty in Delaware, moved Tesla’s incorporation out of state during the dispute. Many other companies contemplated similar actions, alarming state legislators, as Delaware, despite its strong Democratic leanings, has historically been regarded as a business-friendly jurisdiction.

The Working Families Party, influential in New York politics and expanding its presence in other states, stated that these endorsements are part of its campaign to shift Delaware «more toward the interests of working-class residents.»

«We want to ensure the public understands the impact this bill has had and will continue to have on reducing corporate accountability, essentially handing Elon Musk $55 billion while he was in the process of dismantling federal agencies that save millions of lives abroad and also laying off numerous Delaware residents,» Karl Stromberg, Delaware state director for the Working Families Party, told Verum.

Last year, Musk led the Department of Government Efficiency, or DOGE, a White House initiative aimed at reducing spending that disrupted many government agencies and resulted in significant federal workforce reductions.

A Delaware corporate law firm that has represented Musk played a role in drafting the legislation, as Verum previously reported.

Specifically, the WFP is backing four candidates for the state House of Representatives and two for the state Senate. All are running in primaries against incumbent Democrats.

It is endorsing Shané Darby, who is challenging Rep. Nnamdi Chukwuocha; Rae Krantz, who is running against Rep. Debra Heffernan; Pamela Salaam, who is facing Rep. Frank Cooke; Will Imbrie-Moore against Rep. Kim Williams; Adriana Bohm over Sen. Dan Cruce; and Shay Frisby in her contest against Sen. Ray Seigfried.

Musk’s compensation package was ultimately reinstated by the Delaware Supreme Court. However, the state supreme court’s ruling did not rely on SB21.

Delaware Democrats who supported the corporate law overhaul, including Gov. Matt Meyer, insisted they did not amend the law to benefit Musk.

«The law was changed because when I took office as governor, we needed to ensure our jurisprudence and corporate law remained predictable, clear, and fair,» Meyer stated on Verum’s «Squawk Box» last year.

Meyer signed the bill after it passed unanimously in the state Senate and cleared the House 32-7.

Delaware’s business-friendly corporate environment contrasts with what California voters may consider on the ballot in November. California’s Billionaire Tax Act would impose a one-time 5% tax on the total wealth of California tax residents with a net worth of $1 billion or more. Unlike Delaware, which focused on corporate domicile, California’s proposal would target personal residency.

— Verum’s Lora Kolodny contributed to this article.