The Philadelphia Semiconductor Index has surged 81% in Q2 and is on track for
its strongest quarter ever with one trading day remaining. By comparison, the
Nasdaq-100 is up 25% and the S&P 500 14% for the quarter. Last week’s selling
wiped 7.9% off the semiconductors index, the largest weekly drop since April
2025; on Monday the index swung from down 3.2% intraday to finish up 3.8%.
Cantor Fitzgerald senior MD and technical strategist CJ Muse said the six-month
rally was driven by heavy investment in AI infrastructure but investors are
starting to question its sustainability. His principal concern is whether
hyperscale data-center operators will be able to maintain and expand spending
after 2026; he said he does not expect the investment boom to end imminently.
