The PHLX Semiconductor Index, better known as SOX, has officially logged the strongest opening stretch to a calendar year in its history. The index has surged roughly 78-82% year-to-date through late May, collectively pushing the market value of its component companies to approximately $5.7 trillion.
To put that in perspective, the previous record for the SOX’s best start belonged to 1995, when chip stocks climbed 62% during the first 100 trading days. That record stood for more than three decades. It’s not standing anymore.
What’s driving the rally
Two forces are doing most of the heavy lifting here: insatiable demand for AI infrastructure and persistent shortages in memory chips.
Worth noting: this rally is not primarily driven by crypto mining or blockchain hardware demand. The engine here is artificial intelligence, plain and simple.
