Chip stocks rally 35% in April as AI demand boosts semiconductor sector confidence.

After a decline in March, the Nasdaq Semiconductor Sector Index surged 35% in April, driven by renewed investor confidence in AI infrastructure demand and strong earnings from major chipmakers like Intel, Nvidia, and Apple. The rally reflects growing belief that AI spending is translating into real revenue growth, despite ongoing geopolitical risks such as the Iran war causing supply chain disruptions. Analysts remain cautiously optimistic, noting that sustained hyperscaler investments and rising earnings estimates will be key to maintaining the momentum in the semiconductor sector.