Chip Stocks Enter New Bull Market as AI Optimism Drives Semiconductor Surge

TLDR

The PHLX Semiconductor Index entered a new bull market after rising 21% from its July 29 low, spending just 21 days in bear market territory Credo Technology was the top performer, surging 59% since July 29, beating out Coherent’s 58% gain Chip stocks pulled back Tuesday as higher oil prices and bond yields weighed on the sector Apple is testing memory chips from Chinese manufacturers despite U.S. government opposition, as supply constraints push prices higher AI startup Anthropic posted over 14x year-over-year revenue growth, fueling expectations for continued chip demand

---

The PHLX Semiconductor Index officially entered a new bull market this week, rising 21% from its July 29 low. The move marks the sector’s fastest exit from a bear market since March 2020, well below the average of 54 days.

E-mini PHLX Semiconductor Secto (SOX=F)

The surprise leader during the rally was not Nvidia or Intel. It was Credo Technology, a maker of copper cables used to connect AI servers. The stock surged 59% since July 29, narrowly edging out Coherent’s 58% gain.

Other major names also posted strong recoveries. Nvidia gained 18%, Intel climbed 26%, and Micron rose 37% over the same period.

Tuesday Pullback Hits Sector

Despite the bull market milestone, chip stocks fell sharply in premarket trading on Tuesday. Higher oil prices and rising bond yields pulled down most of the sector’s recent winners.

Intel, Micron, Coherent, and Marvell were all down more than 5% ahead of Tuesday’s open. Credo Technology also dropped around 5% in premarket trading.

The Philadelphia Semiconductor Index rose 1.6% on Monday alone, the session that confirmed the bull market. Tuesday’s session reversed some of that momentum.

Apple at the Center of the Chip Story

Apple is dealing with a supply chain issue that puts it in the middle of U.S.-China trade tensions. The Trump administration has advised Apple not to buy memory chips from Chinese firms. Apple is testing chips from those manufacturers anyway, as shortages push prices higher.

U.S. Secretary of Commerce Howard Lutnick publicly opposed Apple’s approach. Apple’s stock is priced at $305.59, which GuruFocus says is about 7.8% above its estimated fair value of $283.43.

Apple carries a GF Score of 96 out of 100, reflecting strong profitability and growth metrics. However, insider selling of over $16 million in the past three months has raised some caution among analysts.

Apple’s price-to-earnings ratio stands at 35x, above its five-year median of around 30x.

AI Demand Keeps Chip Outlook Positive

AI startup Anthropic reported more than 14 times year-over-year revenue growth. That result has reinforced expectations that demand for chips tied to AI infrastructure will stay strong.

Chip companies like Micron and SanDisk also posted gains on Monday, reflecting broad positive sentiment across the semiconductor space.

The combination of AI-driven demand and a rapid bull market recovery has put the semiconductor sector back in focus for investors, even as short-term headwinds from oil and bond markets create some turbulence.

The post Chip Stocks Enter New Bull Market as AI Optimism Drives Semiconductor Surge appeared first on CoinCentral.