The Magnificent Semis?

Semiconductor stocks have surged this year, driven by AI-related demand for advanced chips. The MVIS U.S. Listed Semiconductor 25 index is up about 55% YTD, outperforming the Bloomberg “Magnificent 7” basket by roughly 48 percentage points. The current quarter is the semiconductor sector’s strongest since late 2001 (and still only halfway through). Broader participation is rising beyond Nvidia—Intel (INTC) and Micron (MU) have each risen more than 150% YTD while Nvidia is up about 20% YTD—underscoring a widening market rally. The piece argues that AI-driven demand creates a multi-decade spike for semiconductors and suggests active managers may benefit from navigating the sector’s evolving opportunities.