The semiconductor party

The semiconductor ETF, which includes companies such as NVIDIA, Taiwan Semiconductor, Broadcom, Qualcomm, and Texas Instruments, has outperformed the Nasdaq 100 ETF (QQQ) by 45% or three standard deviations based on 1-year trailing relative returns. This significant outperformance against the technology sector is a rare occurrence, having only happened twice in the past 20 years. Historically, each instance was followed by a swift catch-up in performance by the technology peers. For the moment, AI is mainly about semiconductors in the stock-market but we believe this could change over time.