American semiconductor shares climbed to unprecedented levels on Friday, propelled by Intel’s better-than-expected revenue projection, which reinforced confidence that the surge in artificial intelligence demand continues unabated in the chip industry. The Philadelphia Semiconductor Index, a key benchmark for the sector, advanced 2.5% to a new peak and was poised to mark its 18th consecutive day of gains. The index has risen over 42% year-to-date. Semiconductor companies have benefited significantly from major technology firms’ investments in expanding AI capabilities. ‘The competition to develop AI infrastructure persists, with strong performance in semiconductors and sustained AI demand,’ noted Angelo Kourkafas, a senior investment strategist at Edward Jones. Data from LSEG I/B/E/S indicates that the semiconductor segment anticipates a 104.9% earnings increase for the first quarter, far exceeding the 46.2% growth projected for the broader S&P 500 technology sector. Intel’s stock jumped 22.3%, exceeding its high from the 2000 dot-com period, due to positive signals on demand for central processing units. Competitors AMD and Arm saw gains of 11.8% and 8.1%, respectively. Nvidia, the globe’s highest-valued firm, increased by 1.2%. Last year’s chip stock surge was largely attributed to Nvidia’s success with its leading graphics processing units. US technology equities appeared unaffected by news of a new affordable AI model from Chinese firm DeepSeek, which had previously unsettled investors. ‘Investors now recognize that such developments pose less risk than initially feared. The market is cautious about overreacting again,’ commented David Morrison, a senior analyst at Trade Nation. The Philadelphia Semiconductor Index trades at approximately 26.6 times its forward 12-month earnings, compared to 20.7 for the S&P 500. Analog Devices producer Texas Instruments projected second-quarter revenue and earnings above expectations on Wednesday, boosting its shares to a record, though they dipped 2.4% on Friday.
