NVIDIA has surged nearly 19% over ten consecutive trading days, marking the longest winning streak since November 14, 2023. AMD also achieved a ten-day rally, with cumulative gains exceeding 30%, establishing the longest consecutive rise since 2005. Analysts noted that the uncertainty previously overshadowing AI-related trading is dissipating, and investor confidence is rebuilding. Institutional investors are optimistic about the medium-term outlook for semiconductors, believing that the rise of agent AI and physical AI will continue to drive profit growth for chipmakers.
Capital flows back into the AI sector, with chip stocks collectively gaining strength as institutions express optimism about the medium-term prospects of the semiconductor industry.
On Tuesday, April 14, NVIDIA rose nearly 4%, marking its tenth consecutive trading day of gains. This represents the longest winning streak since November 14, 2023, with a cumulative increase of 18.97%.
Meanwhile, AMD also completed its tenth consecutive day of gains on the same day, marking the longest such streak since May 2005, with an impressive cumulative rise of 30.11% during this period.
Analysts believe that the collective surge in chip stocks indicates that the previous uncertainty surrounding AI trading is dissipating, and investor confidence is regrouping.
Gil Luria, Managing Director at D.A. Davidson, stated that the market is becoming “increasingly optimistic” about the trajectory of AI development. As related investments continue into next year, funds are flowing to semiconductor companies poised to benefit from ongoing data center construction.
Investors shift from defense to offense, returning to the AI sector.
NVIDIA’s stock price had been stuck in a deadlock for several months, during which investors temporarily shifted to defensive sectors like consumer staples and sought other AI-related targets with higher growth potential.
Jamie Meyers, a securities analyst at Laffer Tengler, stated that at the beginning of the year, due to concerns over a cooling tech trade, investors significantly reduced their winning positions. Now, they are “returning to reality.” Meyers added:
The growth (of AI-related stocks) is there.
He also pointed out that NVIDIA has recently lacked significant catalysts, as its product roadmap “is already well-known to the market, leaving almost nothing surprising.”
However, Jamie Meyers believes that the company’s frequent updates and iterations themselves are evidence of its “astonishing growth momentum.”
Andrew Rocco from Zacks Investment Research stated that, from a medium-term perspective, NVIDIA, AMD, and Intel will all benefit from the continued expansion of AI infrastructure.
He further added that the rise of agent-based AI and physical AI will further drive profit growth for chip manufacturers, as these applications will rely on massive computing power.
