Chip stocks have emerged as a key investment focus on Wall Street, with positive momentum continuing into the start of 2025. The VanEck Semiconductor ETF (SMH) rose 4% in January, building on a 38.5% gain in the previous year and a remarkable 72.3% surge in 2023. Nvidia, a leader in the sector, increased 7.6% in the first two trading days, recovering from a slight dip in December. The semiconductor sector received an additional boost after Foxconn reported record revenue. Nvidia shares rose, as did those of Broadcom and Micron Technology. Despite a flat performance in December, investor sentiment remains upbeat, particularly in anticipation of Nvidia CEO Jensen Huang’s presentation at CES, where insights into AI and chip strategies are expected. Analysts predict that ongoing AI advancements will drive demand for high-performance chips, which could result in robust profits for semiconductor companies. This optimism is reflected in the broader market, with index futures for the Dow Jones, S&P 500, and Nasdaq-100 also seeing gains. Meanwhile, American Airlines received a rating upgrade, indicating confidence in its recovery and growth potential amid a challenging environment.
