By Joe Ciolli
Publication Date: 2026-05-12 09:50:00
A few weeks ago, First Trade chronicled the record streak of gains in semiconductor stocks. The Philadelphia Semiconductor Index (SOX) was entering its 18th straight day, which ended up being the extent of its epic run.
But that wasn’t the end of the story. After a two-day pullback, SOX continued its ascent. Since the April 28 market close, the index is up another 20%.
What’s more, the increases haven’t been solely in the US. South Korea’s Kospi index — which has outsized exposure to chipmakers, including its biggest component, Samsung — has seen torrid gains as well.
The reason why is a classic case of supply and demand. AI has driven immense demand for computing power, which includes a range of semiconductors. That’s resulted in a chip shortage, which has also contributed to higher prices.
If chip stocks were having a moment in mid-to-late April, they’ve gone full-fledged supernova since. Let’s break down the key contributors, what’s driven them so much higher, and…