Mega-cap chip stocks drive gains as Intel, AMD, and Broadcom report strong AI-driven revenue growth and guidance upgrades.
The Philadelphia Semiconductor Index has surged 64% since late March, led by AI infrastructure chip stocks. Intel, AMD, and Broadcom reported significant year-over-year revenue growth in AI and data center segments, fueling the rally.
Intel’s Q1 non-GAAP EPS reached $0.29, far exceeding the $0.01 estimate, while Data Center and AI revenue rose 22% to $5.05 billion. AMD revised growth guidance higher after Data Center revenue jumped 57% to $5.78 billion, with Q2 guidance at $11.2 billion. Broadcom’s AI semiconductor revenue more than doubled to $8.4 billion, with Q2 guidance at $10.7 billion.
The index added 5.5% last Friday alone, driven by reports of Intel securing an Apple chip deal and strong earnings momentum. Despite the rally, half the S&P 500 remains under pressure, highlighting a narrow market leadership.