The Philadelphia Semiconductor Index surged more than 3% at the open on May 26, with Micron Technology, Marvell Technology, AMD and Arm Holdings all reaching record highs. Micron led the rally with an 11% gain, while Marvell added 9% and AMD and Arm rose 4% and 3%, respectively.
The Philadelphia Semiconductor Index surged more than 3% at the open on May 26, with Micron Technology, Marvell Technology, Advanced Micro Devices and Arm Holdings all reaching record highs.
"Earnings season looked really good and the economic data, save a few outliers, looked pretty solid so fundamentally the picture looks really solid," James St. Aubin, chief investment officer at Ocean Park Asset Management, said.
Micron led the rally, jumping more than 11%. Marvell Technology gained over 9%, while AMD rose more than 4% and Arm added over 3%. The Philadelphia Semiconductor Index has climbed 18% over the past eight weeks, with the S&P 500 posting its eighth consecutive weekly gain through May 22 — the longest streak since December 2023.
The rally extends a semiconductor recovery driven by resilient AI infrastructure demand and a strong corporate earnings season. UBS Global Wealth Management raised its 2026 year-end S&P 500 target to 7,900 from 7,500, citing "insatiable demand for data center infrastructure." Nvidia, the world's most valuable company, rose 0.5% on May 22 after providing a strong quarterly forecast, though its stock slipped 1.8% on May 21 as investors took profits following its $80 billion share-repurchase program. AMD trades at 28 times forward earnings, while Micron trades at 15 times — a valuation gap that reflects differing growth expectations across the semiconductor value chain.
This article is for informational purposes only and does not constitute investment advice.
