- The semiconductor index $SOX is on a historic 14-day rally, nearing its all-time record streak.
- Semiconductor stocks are now significantly outperforming the S&P 500, trading 42% above their Dot-Com Bubble peak level.
- Major hedge funds are aggressively buying into the tech sector, with semiconductors leading the institutional demand.
- The AI boom is creating a new fundamental value proposition for chipmakers, fueling the sector’s momentum.
The Semiconductor Index ($SOX) is currently powering through a historic rally in US markets, gaining for 14 consecutive trading days as the demand for AI-processing chips reaches a fever pitch. This surge has pushed the index to a decades-high performance relative to the broader market, according to financial analysis.
Consequently, the ratio of $SOX to the S&P 500 has hit an unprecedented 1.35. “The ratio is now 42% above the 2000 Dot-Com Bubble peak of 0.95,” the data shows, highlighting the sector’s extraordinary strength.
Meanwhile, institutional investors are placing massive bets on this momentum. Reports confirm that hedge funds purchased global technology stocks more than any other sector last week. This activity was driven by new long positions in semiconductors, signaling genuine institutional demand rather than short-term repositioning.
This aggressive buying has lifted hedge fund exposure to global tech to its highest level in five years. The sector’s fundamentals are being reshaped by the ongoing AI revolution, which relies entirely on advanced semiconductors.
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