The tech sector is no stranger to market-leading gains. Over the past eight years, it’s finished first or second among the S&P 500’s 11 sectors five times. Since the conclusion of the last bear market, tech posted gains of 57.8% in 2023 and 36.6% in 2024. This year, its 14.36% gain is second only to industrials’ gain of 14.47%.
Much of its recent success was predicated on the explosive demand for AI components and infrastructure. So when news breaks of anything AI-adjacent, it has an outsized impact on the sector—specifically for companies that operate in the microchips and semiconductor industry.
