Chip stocks best quarter ever (with Ed Ludlow, Caroline Hyde)

The Philadelphia Semiconductor Index is on track for its best quarter ever, up 86% in three months, driven by AI infrastructure spending. Memory and storage companies like Micron are the real story this year, with demand expected to stay elevated into 2027-2028 due to supply constraints. Despite volatility, the fundamental story remains strong, though valuation concerns exist for some names.

Yields

implicit

RUT

Oil

Metals

USD

Bloomberg News / Media 7.0
Financial Media
Ryan Vlastelica 4.0

Chip stocks best quarter ever (with Ed Ludlow, Caroline Hyde)

ndx

The Nasdaq 100 is higher with outperformance in chip stocks. The semiconductor index is up 86% in a quarter, and the fundamental AI story is intact with strong demand expected through 2027-2028.

Ed Ludlow

The Philadelphia Semiconductor Index is on track for its best quarter ever, up 86% over three months and nearly 100% year-to-date, driven by AI infrastructure spending.
Ryan Vlastelica

The quarter has been very volatile despite the dramatic upward move, with a 6% intraday swing yesterday on no fundamental change, reflecting debate about how long AI capex can sustain at current accelerating levels.
Ryan Vlastelica

The real story this year has been memory and storage companies like Micron, SanDisk, Western Digital, and Seagate, as people realize how central these are to data center buildouts.
Ryan Vlastelica

Memory chips are the bottleneck in the AI trade - there simply aren't enough being made to meet demand, which should keep demand elevated into 2027-2028, possibly 2030.
Ryan Vlastelica

Most people are confident about the fundamental story and expect capex and demand to remain high, but there's skepticism about whether stock prices will continue to reflect that.

SignalTube

markets at a glance