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.