What is a chip stock?

Chip stocks range from giants like Intel ( INTC ), Qualcomm ( QCOM ), AMD ( AMD ), Nvidia ( NVDA) and Taiwan Semiconductor ( TSM) down to lesser-known names like Qorvo ( QRVO) and Microchip Technology ( MCHP ), providing the underpinnings for all types of devices, from giant servers down to smartphones.

Are chip stocks lagging?

It’s a big day for chip stocks, but the year’s top-performer is suddenly lagging. The PHLX Semiconductor index advanced about 3% on Monday afternoon. Broadcom was up nearly 8%, the S&P 500’s second-best performer. Other winners included Lam Research and AMD, which rose about 4% and 3%, respectively.

When will chip stocks peak?

"The current upcycle started in late'23, so we are only in quarter 3, implying strength likely till mid-26E. However, chip stocks (SOX) change direction 6-9 months ahead of cycle inflection, so semis could potentially peak sometime around 2H25, or another year+ from now," Bank of America said.