The iShares Semiconductor ETF (SOXX) surged 5.00% during intraday trading on Friday, extending a remarkable winning streak for the semiconductor sector.
The rally is primarily driven by Intel's better-than-expected first-quarter earnings report and optimistic outlook for AI-linked demand. Intel shares jumped significantly after the chipmaker reported results that exceeded Wall Street expectations, adding momentum to the broader semiconductor sector. Analysts note that the semiconductor index has achieved a record 17-day winning streak, with the current rally being the biggest such move into a new high in the history of the semiconductor index.
Broader AI-driven demand is fueling the semiconductor sector's performance. The AI growth cycle is expected to continue for one to two years, with chips and hardware remaining the most attractive investment opportunities. Additionally, strong earnings expectations for other semiconductor companies like SK Hynix, driven by higher memory-chip prices and increased shipments, are contributing to the positive sentiment across the industry.
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