U.S. Chip Stocks Achieve Best Annual Performance Since 2009, Thanks to Nvidia and AMD
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On December 31, news emerged that U.S. semiconductor stocks are poised to record their best annual performance in over a decade, with chipmakers seen as the most direct beneficiaries of artificial intelligence (AI) playing a pivotal role.
This year, the Philadelphia Semiconductor Index has undoubtedly been one of the brightest stars in the U.S. stock market, surging 65% for the year, marking its largest annual gain since the 2009 financial crisis when the index soared 70%. Despite closing down 0.8% on Friday, it remains near historic highs.
IT Home noted that among the 30 component stocks, all but Wolfspeed saw their share prices rise in 2023. Nvidia was the standout performer, with its stock price more than tripling, making it the first chipmaker to reach a trillion-dollar market capitalization. Another AI chip giant, AMD, also saw its stock price surge nearly 130% this year.
Wolfspeed was the only underperforming chip stock, with its share price dropping 37% for the year. The company, which produces power modules for electric vehicles, issued two disappointing earnings forecasts this year due to ongoing production issues at its new factory.
It is worth mentioning that chip design company ARM went public in September this year. Although its initial performance was quite volatile, it has since staged a strong rebound, with cumulative gains of nearly 60% from its October lows.
Looking ahead, with the rapid development of emerging technologies such as artificial intelligence and electric vehicles, as well as the gradual recovery of global supply chains, the chip industry is still expected to maintain strong growth momentum.