1 hour ago
1
The Philadelphia Semiconductor Index (SOX) has surged over 50% in the past 25 trading days as of early May 2026, marking its strongest rally since March 2000. The index first crossed 10,000 points in late April and reached around 11,775 by May 8.
What’s driving the rally
A scramble for high-bandwidth memory and DRAM propelled the advance, with hyperscalers bidding up limited supply. Every SOX component gained at least 14%, from analog specialists to equipment makers.
Intel soared over 100%, buoyed by deeper Apple ties. Connectivity plays Credo Technology and Astera Labs doubled alongside, riding data-center buildouts. Year-to-date, the index climbed 65%.
The bubble question nobody can avoid
Veteran strategists sound alarms. Marko Kolanovic, the former JPMorgan chief strategist famed for calling major market turns, urges caution on the breakneck pace, while Michael Burry added protective puts on chip ETFs. Bulls counter that AI capex from hyperscalers dwarfs 2000’s PC bust.
What this means for investors watching the AI chip arms race
The rally underscores AI’s global supply chain, spanning U.S. design houses, Taiwan’s foundries, South Korea’s memory leaders, and Japan’s equipment makers. Investors should track Intel’s Apple partnership closely.
Disclosure: This article was edited by Editorial Team. For more information on how we create and review content, see our Editorial Policy.
English (US) · 