Markets Near Record Highs and Tech Stocks Lead the Way. Just Not the Ones You Think.

U.S. equity benchmarks are near record highs led by technology and a blistering semiconductor rally, driving the US Tech 100 higher. Semiconductors (PHLX) have surged—up over 44% since the end of March—on momentum from chip names including Broadcom, Intel, AMD and Micron, while Nvidia’s outsized gains (and ~$5 trillion market cap) have concentrated market leadership. With an index of the Magnificent Seven up roughly 15% this month but trading at a higher forward P/E (~29x) than the broader S&P (21.5x), upcoming March-quarter results from Microsoft, Apple, Amazon, Google and Meta are positioned to test the AI-fueled rally and determine whether semis can pause and megacaps resume leadership. Analysts note aggregate S&P Q1 profits are tracking about +16.1% with Q2 and full‑year growth forecasts still intact, but caution that elevated multiples and geopolitical uncertainty could increase volatility.