Why the semiconductor industry remains a top performer.

Last week was a massive one for the tech world, and if you’ve been watching the markets, you probably noticed a lot of green.

U.S. chip stocks reached record highs on Friday. This was largely driven by a very positive outlook from Intel, which reminded everyone that the massive build-out of Artificial Intelligence (AI) infrastructure is still going strong.

 What happened last week?

The Microchips Fund (SMH ETF), which tracks leading semiconductor companies, rose 5.1% on Friday, April 24, closing at an all‑time high of $506.44. So far this year, the fund has gained about +34%, with a record‑breaking 22% surge in April, the strongest monthly advance since 2003.

Here is what moved the needle:

Intel rose 22.6%, passing a peak it hasn’t seen since the year 2000. This happened because of the strong demand for the processors that help AI models answer questions.

AMD followed closely, with gains of around 13.7%.

Nvidia, which is currently the most valuable company in the world, also saw steady growth as tech giants continue to spend heavily on the chips needed to train large AI models.

What the experts are saying

Investors were a bit nervous earlier this year about whether all this spending on AI would actually pay off.

However, the latest results suggest the momentum is real. They also pointed out that even though these stocks have grown quickly, their valuations have actually become more reasonable lately, coming more in line with the rest of the market.

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 What this means for you

Lately, the semiconductor industry is seeing exceptional earnings momentum.

Already invested in the Microchips Fund? Now is a great time to keep your momentum going. You can top up your investment to take advantage of this long-term shift in how the world uses technology.

New to the sector? If you aren't sure how to fit these tech giants into your current plan, we can help.

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