Semiconductor stocks surge 138% in a year, outpacing NVDA’s 8.9% gain, as valuations spark concerns over potential sharp corrections.
Semiconductor stocks have surged 138% over the past year, driven by renewed AI trade enthusiasm, while Nvidia (NVDA) remains just 8.9% above its November lows. Cerebras (CBRS) debuted strongly, reflecting investor appetite for hardware plays amid software sector uncertainty.
The sector’s rapid gains contrast with software valuations, which have reset to relative value levels. Analysts warn that crowded trades in semiconductors could trigger volatility, despite their role as perceived safe beneficiaries of AI growth.
Questions persist over whether the current euphoria is sustainable, particularly as software firms struggle to monetize AI and hardware stocks attract disproportionate capital.