The semiconductor sector is having a quarter for the history books. The Philadelphia Semiconductor Index, better known as SOX, has climbed approximately 74% through late June, putting it on pace for its strongest quarterly performance ever recorded.
What’s driving the surge
The short answer: artificial intelligence. Hyperscale data center investments from the largest tech companies have created a demand environment that chip executives themselves are struggling to keep up with.
Micron Technology and Qualcomm both reported strong quarterly results with bullish forward guidance, contributing to a late-June rebound in chip stocks. NVIDIA, AMD, and Intel have all posted significant year-to-date gains, each riding the same wave of data center demand.
The Invesco PHLX Semiconductor ETF, ticker SOXQ, returned over 58% in the three months leading into mid-2026.
