Chip stocks rally to start 2026 after third-straight winning year
Chipmaking stocks have rebounded to start 2026 as investors flock to the winning AI-powered sector after a year full of gains.
Micron Technology Dutch chip equipment manufacturer ASML increased by 10% and 9% respectively as we started the new trading year. Lam Research And Intel While each rallied more than 6 percent, Marvel Technology increased by 5%.
Advanced Micro Devices And Nvidia increased by 4% and 1% respectively. In 2025, AMD increased by 77% and Nvidia increased by 39%.
Chipmaking stocks soar in 2025 thanks to ongoing AI developments. Like hyperscalers Amazon And Google We have spent heavily to meet the unchanging data center demand.
Last year marked the third consecutive year of gains for the sector despite rising AI valuation concerns and concerns about the sustainability of the business.
Investors have expressed concerns about the possibility of an AI bubble in recent months as the sector continues its meteoric rise. In November, Michael Burry of “Big Short” fame revealed a short position in Nvidia and AI winner palantir.
He then blasted hyperscalers to artificially increase earnings.
The rise in chip manufacturing stocks reassured the markets VanEck Semiconductor ETF A rise of about 4% is expected in 2025, on top of a rally of about 49%.
The ETF has rebounded for three consecutive years, posting its best year ever in 2023, up more than 72%.
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