Semiconductor stocks have surged more than 10% in August 2026, poised to record the sector’s strongest August in over 20 years. This dramatic reversal follows a brutal 20%-plus decline in July, the worst monthly drop since the 2008 financial crisis, driven by doubts about the sustainability of AI infrastructure spending. The PHLX Semiconductor Sector Index has climbed back to record territory amid renewed AI optimism. Leading names like NVIDIA, Broadcom, AMD, TSMC, and Marvell Technology are driving the rally, with the iShares Semiconductor ETF (SOXX) posting year-to-date returns between 70% and 83%. Several earnings reports due in late August, particularly NVIDIA’s, could either cement the rally or shake investor confidence.
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