Recently, a striking phenomenon has emerged in the U.S. stock market, with many stocks experiencing what appears to be "vertical rallies." The underlying reasons are straightforward: the global industrial structure and policy environment are undergoing rapid transformation. Data reveals that, as of Friday, approximately 18% of the stocks within the S&P 500 index have achieved year-to-date gains of 10% or more. In contrast, over the past five years, the average proportion of stocks reaching this level of gain by January 16th was merely 9.4%. This year's figure, having doubled, underscores the remarkable breadth and intensity of the current market trend.
This trend is far from fleeting. Statistical analysis has identified dozens of stocks within the technology, financial, and metal mining sectors that have surged over 50% in the past year. The collective market capitalization of this group of "high-flyers" now exceeds $4 trillion, with the price charts of many exhibiting a distinct parabolic shape, trending almost straight upwards.
A recent illustrative case comes from the memory chip sector. Micron Technology (MU.US), Western Digital (WDC.US), and SanDisk Corp (SNDK.US) have all benefited from robust storage demand driven by the artificial intelligence wave. AI chip manufacturers, including NVIDIA, continue to exhibit escalating demand for high-performance memory, propelling related memory stocks to accumulate gains exceeding 200% over the past year.
From a broader technology industry perspective, the urgent need for computing power has surged dramatically as companies integrate AI agents into their software systems to enhance efficiency and reduce costs. The continuous expansion of data centers dedicated to training large models has directly boosted semiconductor demand. While NVIDIA (NVDA.US), AMD (AMD.US), and Broadcom (AVGO.US) previously took turns in the market spotlight, memory chip manufacturers are now commanding center stage.
The scope of AI-related beneficiaries continues to widen. Connector manufacturer Amphenol (APH.US) has seen its revenue contribution from data centers rise consistently in recent years, with its stock price doubling over the past year. Materials giant Corning (GLW.US), with a market cap of around $80 billion, has witnessed its stock price climb approximately 88% over the same period, driven by demand from data center expansion.
The AI construction boom has also invigorated the commodities sector. Copper prices have risen about 30% over the past year, fueled not only by improving global economic prospects but also by growing demand for copper from data centers. Consequently, share prices of major mining companies have followed suit. Southern Copper Corporation (SCCO.US) saw its stock price increase by roughly 91% within a year. Analysts note that mining companies carry significant fixed costs; thus, rising copper prices not only boost sales but also amplify profit margins more rapidly.
Simultaneously, gold mining stocks have staged a strong rebound, although this is not directly driven by AI. Newmont Corporation (NEM.US) and Barrick Gold (GOLD.US) have both seen their stock prices double over the past year, while the price of gold itself accumulated a gain of approximately 66% over the same period.
The rise in gold prices is underpinned by profound shifts in the global political and financial landscape. In April 2025, the Trump administration reignited its tariff agenda, sparking concerns about the U.S. economic outlook and causing the U.S. dollar to weaken significantly against a basket of major currencies. Months later, the dollar remains subdued near those lows. Concurrently, central banks in numerous countries are gradually reducing the proportion of U.S. dollars in their foreign exchange reserves, increasing their gold holdings instead. This trend gained further momentum after the U.S. froze hundreds of billions of dollars of assets belonging to the Russian central bank. Concerns about the long-term prospects of the dollar have re-established gold as a core safe-haven asset, significantly benefiting gold mining companies.
The financial sector has also delivered impressive performance. Share prices of major U.S. investment banks have climbed substantially, with Citigroup (C.US) and The Goldman Sachs Group (GS.US) both posting gains exceeding 50% over the past year. The market widely anticipates that as the Federal Reserve enters a rate-cutting cycle, bank funding costs will decline, credit demand will recover, and fee income from mergers and acquisitions (M&A) and capital markets activities will increase.
Beyond profit expectations, changes in the regulatory environment have also boosted bank valuations. Policy shifts include relaxing bank capital and reserve requirements, thereby freeing up more funds for lending and M&A activity. Furthermore, the Federal Trade Commission and the U.S. Department of Justice have accelerated their review processes for M&A transactions, reducing corporate deal costs and enhancing the certainty of deal completion.
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