Semiconductor stocks haven’t been this hot since the dot-com bubble — and it could end badly

The SOX rocks!

The Philadelphia Semiconductor Sector Index (^SOX) — better known among traders as the SOX — has surged 30% in the past 13 days. That marks the largest rally of this kind since 2002, BTIG chief market technician Jonathan Krinsky pointed out. The last and only time the SOX saw a similar move into a new high was March 2000, at the peak of the dot-com bubble.

The SOX is more than 16% above its 50-day moving average and at a 52-week high, which is a warning flag, Krinsky said. His work shows that the SOX has been negative 85% of the time five days later, with a median return of -3.64% following this signal.

The Philadelphia Semiconductor Sector Index is a capitalization-weighted index composed of the 30 largest US companies involved in the design, distribution, manufacture, and sale of semiconductors.

It’s dominated by a few megacap names that serve as the foundation for the global artificial intelligence build-out. The four largest weightings in the index, from highest to lowest, are Nvidia (NVDA), Broadcom (AVGO), Micron (MU), and AMD (AMD).

These four chips have seen their stocks surge in April. Memory chip player Micron has gained 41%, Broadcom is up 38%, AMD is up 242%, and Nvidia has tacked on 22%.

Besides pure momentum, the sector has recently gotten a jolt of good news.

Taiwan Semiconductor Manufacturing Company (TSM) delivered an impressive start to the year despite war-related uncertainty.

First quarter revenue surged 35% year over year to a record 1.134 trillion New Taiwan dollars (about $35.6 billion). This marked the first time the foundry giant’s quarterly sales had crossed the trillion-dollar threshold in local currency. Results significantly surpassed the high end of its own previous guidance.

Sales in March jumped 45% to roughly $13 billion, hinting that the AI supercycle is entering an even higher gear.

TSMC shares are up 17% in April.

“We are seeing no cracks in AI demand on the chips/hardware or software front which gives us a bright green light to own the core tech winners heading into 1Q earnings season,” Wedbush tech analyst Dan Ives said in a note.

StockStory aims to help individual investors beat the market.

Brian Sozzi is Yahoo Finance’s Executive Editor and a member of Yahoo Finance’s editorial leadership team. Follow Sozzi on X @BrianSozzi, Instagram, and LinkedIn. Tips on stories? Email brian.sozzi@yahoofinance.com.

Click here for in-depth analysis of the latest stock market news and events moving stock prices

Read the latest financial and business news from Yahoo Finance



Source link

Visited 1 times, 1 visit(s) today

Related Article

‘Big Short’ Michael Burry Doesn’t See Red-Hot Stocks Crashing yet

Michael Burry doesn’t expect the record rally in stocks to turn into a devastating crash, as that kind of “needle top” would be unprecedented in market history. Loading audio narration… “Right, a needle top is like a unicorn, mythical until proven,” the investor of “The Big Short” fame wrote in a Sunday discussion thread with

Investors are misreading Iran conflict news: analysts

An Iranian flag flutters as a woman walks past damaged buildings amid a 10-day ceasefire between Lebanon and Israel, in the southern suburbs of Beirut, Lebanon, April 20, 2026. Marko Djurica | Reuters “Complacent” investors risk getting wrong-footed as they continue to misread developments in the Iran war, analysts said after markets reacted to the

Back at all-time highs, Investors take a break – Dow Jones and US Stock Market Outlook

Elior Manier Market Analyst Elior brings over seven years of experience in financial markets to our analyst team. Since 2018, he has actively engaged in observing, charting, and trading, driven by his passion for mastering market dynamics. With a profound understanding of the geopolitical and macroeconomic forces that shape market movements, Elior focuses on analysing

3 Picks With Market Caps Over £50M

The United Kingdom’s stock market has recently faced challenges, with the FTSE 100 index experiencing declines amid weak trade data from China, highlighting global economic interdependencies. In such a climate, investors may find opportunities in penny stocks—an investment area that remains relevant despite its somewhat outdated terminology. By focusing on companies with strong financial health

1 chart that reveals the wide gap between Wall Street and Main Street

You can steer an oil tanker through the divide between how Wall Street and Main Street view the US economy. The S&P 500 (^GSPC) is at an all-time high, while consumer sentiment is at an all-time low (see chart below), Creative Planning chief markets strategist Charlie Bilello pointed out. “We’ve never seen a gap this

AriseAlpha Launches AI Trading Bots to Simplify Smarter

NEW YORK, April 20, 2026 (GLOBE NEWSWIRE) — As financial markets generate increasing volumes of data, trading is shifting from information access to information interpretation. AriseAlpha has officially launched its free AI trading bot platform, designed to help users transform complex market data into clearer, more actionable decisions across cryptocurrency and stock markets.The launch reflects

Undervalued Small Caps With Insider Buying Across Regions To Consider

Over the last 7 days, the United States market has risen by 4.0%, contributing to a remarkable 39% increase over the past year, with earnings projected to grow by 16% annually in the coming years. In this dynamic environment, identifying good stocks often involves looking for companies that are not only undervalued but also show

European Stocks That May Be Trading Below Their Estimated Value

Amid a backdrop of geopolitical developments and cautious optimism in the European markets, the pan-European STOXX Europe 600 Index has shown resilience, ending the week with a notable gain as investors processed corporate earnings and news of de-escalation in the Middle East. With economic forecasts being adjusted and interest rate hikes not imminent, discerning investors

US investors ‘rebalancing back’ to Hong Kong market

Financial Services Development Council Chairman Benjamin Hung Pi-cheng (second left) poses with other FSDC officials during an interview on April 20, 2026. (OSWALD CHAN / CHINA DAILY)  Amid turbulence and volatility, global investors are trying to “rebalance” some of their worldwide assets back to the Chinese mainland and Hong Kong markets in a trend that

Barclays trims EQT price target to SEK 350 from 360, maintains Equal Weight – BN

Real-time Estimate Cboe Europe 03:36:12 2026-04-20 am EDT 5-day change 1st Jan Change 319.70 SEK -2.29% +8.71% -11.49% Published on 04/20/2026 at 12:45 am EDT Finwire – Translated by Marketscreener Legal disclaimer Contact us to request a correction – See original Barclays has lowered its price target for EQT to 350 kronor (from 360) while

SB1 Markets cuts SCA price target to SEK 140 (156), reiterates Buy

Market Closed – Nasdaq Stockholm 12:00:00 2026-04-17 pm EDT 5-day change 1st Jan Change 110.40 SEK +1.70% +1.85% -9.95% Published on 04/20/2026 at 01:31 am EDT Finwire – Translated by Marketscreener Legal disclaimer Contact us to request a correction – See original SB1 Markets has lowered its price target for SCA to SEK 140 (from

Aktsiaselts Infortar own share acquisition transactions

Aktsiaselts Infortar acquired its own shares on the Nasdaq Tallinn Stock Exchange during the period of 13 April – 17 April 2026 as follows: Date Aggregated volume (pcs) Weighted average price per day (EUR) 13.04.2026 186 46,1484 14.04.2026 184 46,1326 15.04.2026 197 46,5000 16.04.2026 194 46,5000 17.04.2026 192 46,5000 Aktsiaselts Infortar is acquiring its own

3 Promising ASX Penny Stocks With Over A$80M Market Cap

The Australian share market is poised for a modest gain despite recent global volatility, highlighting the resilience of traders amidst ongoing geopolitical tensions and economic uncertainty. In such a climate, investors often seek out opportunities that balance affordability with growth potential, which is where penny stocks come into play. Although the term “penny stocks” might

The standout performance of the ChiNext Board—often referred to as ‘China’s Nasdaq’—has seen the top seven weightings rise to 48% of the index, comparable to the MAG 7.

The ChiNext Index surged 6.65% this week to reach 3,678 points, nearing its historical high in 2015, and has become the leader among A-share broad-based indices. The Guotou Securities team led by Lin Rongxiong pointed out that the combined weighting of the top seven stocks represented by CATL and Zhongji Xuchuang has soared from 10%

“I Like the Company Very Much”

Vertiv Holdings Co (NYSE:VRT) was one of the stocks on Jim Cramer’s recent Mad Money game plan. Cramer said that the stock’s elevated levels make him want to be “careful,” and went on to say: Next up, Vertiv’s had a huge run. The company just, it provides the non-semiconductor innards, a lot of air cooling.

Asia markets open mixed as U.S.-Iran tensions escalate after ship seizure

Currency dealers monitor exchange rates as an electronic screen (top) shows South Korea’s benchmark stock index (KOSPI) in a foreign exchange dealing room at the Hana Bank headquarters in Seoul on March 13, 2026. Jung Yeon-je | Afp | Getty Images Asia-Pacific markets were mixed Monday, as investors continue to keep a cautious eye on

0
Would love your thoughts, please comment.x
()
x