Semiconductors Just Posted Their Best Four-Day Rally Since March 2020. These Five Stocks Led the Charge

Key takeaways

• Semiconductor stocks have staged a strong rebound after a brutal July, driven by hyperscaler spending and a record influx of funds into the sector.
• 16.8%
• 21%
• 21.8%

What happened

Semiconductor stocks staged a strong rebound after a brutal July, with the iShares Semiconductor ETF surging 16.8% over the past four trading sessions, its biggest four-day gain since March 2020.

Why it matters

The rally comes after a 21% decline in July, the worst monthly performance for SOXX since December 2002, and was driven by a combination of factors, including hyperscaler spending, potential EPS near $100, and a record $6.9 billion in net inflows into SOXX in July.

Short-term and longer-term

Short-term. The rally has been driven by a combination of factors, including hyperscaler spending and a record influx of funds into the sector.

Longer-term. The sector's strong rebound is being driven by a combination of factors, including hyperscaler spending and a record influx of funds into the sector.