3 articles
The Philadelphia Semiconductor Index reached a fresh record high while the Nasdaq Composite declined, signaling a sharp bifurcation in the tech sector. Hardware and chip stocks are surging on AI infrastructure demand, while enterprise software names including Salesforce and Adobe face deep losses. The divergence is creating distinct trading opportunities on both sides of the divide.
Micron's HBM output for all of calendar year 2026 is already sold out, with Q3 FY2026 revenue guidance of ~$33.5B set to exceed any full prior year in company history. Sandisk shares have surged over 700% year-to-date, yet both stocks trade at just 10-11x forward earnings — a rare setup where earnings are outpacing price. Supply, not demand, is the binding constraint for AI memory through at least 2027.
Intel has surged 240% year-to-date in 2026, while Nvidia lags the sector at just +15%. AI infrastructure spending is re-rating upstream suppliers and legacy CPU vendors faster than it is lifting the market leader. The bifurcation signals that Nvidia's dominance was already priced in at the start of the year.