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Summary:

Chipmaking stocks experienced a strong rally at the start of 2026, driven by continued investor enthusiasm for the artificial intelligence sector. Companies like Micron, ASML, Lam Research, Intel, and Marvell saw significant gains. This rally builds on strong performance in 2025, fueled by heavy investment in AI infrastructure from hyperscalers like Amazon and Google. Despite concerns about an AI bubble and the sustainability of the rally, the sector continues to thrive, with the VanEck Semiconductor ETF posting significant gains.

News Article:

Chip Stocks Surge into 2026 on AI Hype, Despite Bubble Concerns

NEW YORK, NY – January 2, 2026 – Chipmaking stocks kicked off the new year with a resounding rally, fueled by continued investor enthusiasm for the artificial intelligence sector. The sector’s strong performance in 2025 has continued as AI shows no sign of slowing down.

Micron Technology and Dutch chip equipment maker ASML led the charge, jumping 10% and 9%, respectively, on the first trading day of 2026. Lam Research and Intel also posted strong gains, rallying more than 6% each, while Marvell Technology rose 5%. Industry giants Advanced Micro Devices and Nvidia saw gains of about 4% and 1%, respectively.

The surge builds on a robust 2025, where AMD gained 77% and Nvidia added 39%, propelled by the ongoing AI infrastructure buildout. Hyperscale companies like Amazon and Google have invested heavily in datacenters to meet surging demand for AI capabilities.

However, the sector’s rapid ascent has raised concerns about a potential AI bubble. Investors have been wary of growing AI valuations and the sustainability of current trade volumes. Notable investor Michael Burry, known for predicting the 2008 financial crisis, previously revealed a short position in Nvidia and AI winner Palantir, criticizing hyperscalers for artificially inflating earnings.

Despite these concerns, the VanEck Semiconductor ETF rallied about 4% on the news, building on a nearly 49% rally in 2025. The ETF has now rallied for three consecutive years, with its best year ever in 2023, gaining over 72%.

Analysts at Bernstein remain optimistic about the sector’s prospects.

Whether the rally can be sustained throughout 2026 remains to be seen, but the market is clear that AI is still a significant market driver.

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