2026 Chipmaking Stocks Rally: Micron and ASML Surge as AI Demand Holds Firm
Chipmaking stocks started 2026 with a massive rally, led by Micron (10%) and ASML (9%). Investors continue to bet on AI infrastructure despite growing bubble concerns.
The chipmaking sector isn't cooling down just yet. Chipmaking stocks rallied to kick off 2026, as investors doubled down on the artificial intelligence trade following a stellar performance in 2025. The rally, led by major equipment and memory providers, suggests that the AI infrastructure buildout still has plenty of momentum.
Why the 2026 Chipmaking Stocks Rally is Led by Micron and ASML
Micron Technology and ASML set the pace for the new trading year, jumping 10% and 9%, respectively. According to Reuters, other major players also posted gains: Intel and Lam Research both rose over 6%, while Marvell Technology climbed 5%.
While Nvidia saw a modest 1% gain, its peer AMD rose 4%. This follows a massive 2025 where AMD surged 77% and Nvidia added 39%. The broad-based rally lifted the VanEck Semiconductor ETF (SMH) by approximately 4%.
Concerns Over Sustainability and the AI Bubble
Despite the optimism, some market veterans aren't convinced. Michael Burry, famous for his 'Big Short' bet, recently revealed short positions against AI winners. He's criticized hyperscalers like Amazon and Google for potentially boosting earnings artificially through massive capital expenditures.
High valuations in the semiconductor sector increase the risk of a sharp correction if AI revenue fails to meet lofty investor expectations in the coming quarters.
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