Semiconductor stocks led a broad market rally on Monday, with the Nasdaq Composite gaining 1.3% and the S&P 500 rising 0.7%, driven by Broadcom's announcement that its Apple chip deal extends through 2031 and AMD's selection by an autonomous driving firm for AI training. The rally underscores sustained investor confidence in chip and AI hardware demand, though the Dow lagged due to significant declines in Honeywell and Amgen that offset gains elsewhere.
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The Nasdaq Composite rose 1.3% and the S&P 500 gained 0.7%, led by semiconductor stocks. The iShares Semiconductor ETF jumped 4.1% after a two-week losing streak. Broadcom announced its chip supply deal with Apple will extend through 2031, adding $78 billion（約12兆円） in market capitalization, while Advanced Micro Devices surged 8% on news that Japanese autonomous driving start-up Turing is using AMD graphics processors for about 10% of its AI training needs.
Why it matters
The chip rally shows investor appetite for semiconductor and AI-related hardware remains intact, even after recent weakness. Broadcom's multi-year deal with Apple locks in revenue across multiple iPhone generations, signaling confidence in sustained demand for custom silicon. For businesses tracking tech spending, this suggests major tech companies are committing significant capital to AI infrastructure and chip development.
What to watch
The Dow Jones Industrial Average fell 0.1% despite winners like Goldman Sachs and IBM, held back by sharp declines in Honeywell International (down 7.2% after a spinoff) and Amgen (down 2.6%). Microsoft dropped 1.4% after announcing 4,800 job cuts and a smaller Xbox division, signaling a shift toward AI infrastructure spending over headcount.
Monday's market action reflected a split narrative: semiconductor and AI-related stocks continued their ascent, while traditional blue-chip momentum faltered. The iShares Semiconductor ETF's 4.1% rebound erased a two-week losing streak, suggesting the sector has stabilized despite earlier investor concerns about a slowdown. Broadcom's extended Apple deal through 2031 is particularly significant because it locks in multiple product cycles—a rare sign of long-term capital commitment in an uncertain tech environment. AMD's rise on the Turing partnership demonstrates that investors continue to view the company as a credible alternative in AI hardware, even as Nvidia maintains modest gains.
The Dow's 0.1% decline despite broad-based gains reveals the price-weighted index's structural disadvantage: Honeywell's 7.2% post-spinoff drop subtracted 104 points, and Amgen's 2.6% decline removed another 58 points, overwhelming the smaller gains from winners like Goldman Sachs and IBM. Meanwhile, Microsoft's sharp 1.4% fall after announcing AI-focused restructuring signals Wall Street's uncertainty about whether workforce reductions are the right trade-off for AI infrastructure investment. Together, these moves suggest that investors remain bullish on semiconductors and AI infrastructure but are taking a more cautious stance on traditional tech employment and legacy indices.
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