The semiconductor sector now makes up about 14% of the S&P 500 Index ($SPX), which is more than Energy, Materials, and Utilities combined. That growth is being driven by heavy spending on AI infrastructure, a trend Wall Street expects to continue well beyond 2028.
Chip stocks have been moving higher in recent sessions, with Applied Materials (AMAT) and Lam Research (LRCX) gaining on stronger expectations for NAND demand and higher spending on advanced tech. At the same time, forecasts suggest semiconductor equipment growth could exceed 30% in 2026, supported by massive AI spending and ongoing data center expansion.
