Semiconductors Hit Record Highs As Industry Reaches $6.3 Trillion: 5 Chip Stocks That Outpaced Nvidia This Week – TradingView
The semiconductor rally continues its unstoppable advance, fueled by the propulsion of artificial intelligence, with the U.S. chipmaking industry now soaring to a combined valuation of $6.3 trillion.
The PHLX Semiconductor Sector Index, mirrored by the Invesco PHLX Semiconductor ETF 
SOXQ, is poised for a 6% gain this week, marking its strongest performance in two months and achieving record high levels.
Since late October 2023, the index has surged by 78%, while the broader chip industry has seen an astonishing 169% increase from its October 2022 low.
In stark contrast, the broader tech sector, as tracked by the Invesco QQQ Trust QQQ, has risen by 39% from its October 2023 low and by 88% since October 2022.
Nvidia’s Dominance Poised To Continue
Nvidia Corp. 
NVDA has recently surpassed a $3 trillion valuation, representing nearly half of the broader U.S. semiconductor industry’s total worth. The company is now vying for the title of the world’s largest company, contending with giants such as Microsoft Corp. 
MSFT and Apple Inc. 
AAPL.
“Given NVDA's dominance in the nascent AI space, it may be only a matter of time before NVDA surpasses MSFT to become the most valuable company in the world,” said George Smith, portfolio strategist for LPL Financial.
According to the expert, it is plausible that the NVDA rally will continue as tech-related ETFs are compelled to increase their exposure to the chipmaker during their next rebalancing.
This Week’s Best Performing Chipmakers
Surprisingly, Nvidia is not the top gainer among semiconductor stocks this week.
While the leading chipmaker’s shares have rallied by 9.4%, six other semiconductor companies have outperformed Nvidia, showcasing even stronger gains.
Broadcom Inc. 
AVGO surged 22% this week, driven by stronger-than-expected earnings and an improved AI-related demand outlook from its top client, Apple Inc. AAPL, following the Cupertino-based iPhone maker’s announcement of new AI initiatives at WWDC 2024. This marks Broadcom’s strongest week since the company went public in 2009.
British computer processor and software design company Arm Holdings plc 
ARM was the second-best performer among chipmakers, rising 14% and marking its sixth consecutive week of gains. Arm will join the Nasdaq 100 Index beginning June 24.
Qorvo Inc. 
QRVO followed closely, with its shares up 13% this week.
Read now: Consumer Sentiment Tumbles In June, Reaches 7-Month Low: ‘High Prices As Well As Weakening Incomes’ Raise Concerns
Photo: Shutterstock
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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