Semiconductor stocks rallied Monday, with the PHLX Semiconductor Index (^SOX) jumping more than 3%.
Optimism surrounding the AI trade was bolstered by an upcoming state dinner between President Trump and Chinese leader Xi Jinping, which is expected to draw numerous AI industry leaders.
Chipmaker AMD reached an all-time high, trading above $610 per share and crossing a $1 trillion market capitalization during the session.
Arm Holdings (ARM), a CPU designer, and chipmaker Intel each gained 10%, spurred by social media giant Meta’s (META) unveiling of a new AI agent called MUSE, which ignited a broader rally among server CPU suppliers.
The semiconductor sector has received additional tailwinds, including a report last week that SK Hynix (SKHY) is exploring a deal with Intel (INTC).
Intel shares have rallied more than 35% over the past month, while AMD and Arm Holdings have each gained nearly 30% during the same period, according to Yahoo Finance’s AlphaSpace data.
AI chip leader Nvidia (NVDA) has added more than 4% over the past month.
Chip stocks have been recovering from a midyear slump following a peak in July, when concerns about overinvestment—and more recently, slowdown warnings from AI industry leaders—weighed on sentiment.
Nonetheless, Wall Street sees few indications of a spending slowdown as hyperscalers continue to expand data center infrastructure and AI inference demand accelerates.
Last week, BofA analyst Vivek Arya argued that the semiconductor industry has significant growth potential ahead, pointing to hardware and power constraints as key drivers.
Arya raised his 2030 chip market forecast from $2.7 trillion to $3.2 trillion, citing robust demand for data center capacity, advanced logic, and memory equipment.