Semiconductor Sector Sentiment Trend
Semiconductor Sector Attention Trend
Stock Performance
The semiconductor sector saw a sharp pullback as profit-taking hit major chipmakers. Nvidia (NVDA) fell more than 2% after multiple reports confirmed that SoftBank had sold its entire Nvidia stake for nearly $6 billion. This news pressured the broader semiconductor space despite AMD’s strong Analyst Day presentation. Investors weighed the short-term rotation out of Nvidia against growing enthusiasm for AMD’s expanding AI chip portfolio. CoreWeave, another AI infrastructure player, also stumbled after cutting its sales forecast due to data-center construction delays, intensifying volatility across AI-related chip stocks.
Industry Trends
AI infrastructure investment dominated the headlines. Both Nebius and Google announced major data-center expansions, with the latter committing €5.5 billion to its German operations. Meanwhile, Cerebras Systems unveiled plans to build a sovereign AI data center in Guyana, emphasizing global diversification of AI compute power. These moves suggest the AI boom is entering a new infrastructure-driven phase, benefiting firms supplying chips, memory, and accelerators.
Product and Service Development
AMD took the spotlight with its Analyst Day event, where CEO Lisa Su outlined a bold five-year plan targeting 35% annual revenue growth fueled by AI data-center demand. The company projects a $1 trillion total addressable market for AI chips by 2030. This vision reinforced AMD’s narrative as a credible challenger to Nvidia, especially as hyperscalers diversify their GPU sources. Meanwhile, Apple secured over half of TSMC’s 2nm production, tightening supply for next-gen chips and signaling continued competition in advanced manufacturing.
Strategic Investment and Partnership
Strategic alliances underscored the day’s developments. Microsoft’s $9.7 billion AI partnership with IREN aims to boost cloud efficiency and sustainability, while AI cloud provider Nebius’ $3 billion partnership with Meta positions it as a formidable CoreWeave rival. Rumble’s $767 million AI infrastructure acquisition and Google’s European expansion highlighted that non-traditional players are entering the semiconductor ecosystem through data and cloud investments — reshaping competition beyond chip fabrication alone.
Earnings Outlooks
Analysts generally remain bullish on semiconductor earnings, though short-term caution persists due to valuation concerns. Despite SoftBank’s exit from Nvidia, many analysts, including those cited by MarketBeat, continue to project upward momentum for Nvidia’s long-term price target. AMD’s strong forecast adds support to the sector’s earnings foundation, while CoreWeave’s and Plug Power’s short-term guidance challenges underline that not all AI-linked firms will move in lockstep.
Analyst Opinions
Analysts expressed optimism that AI and data-center demand will remain the primary growth engines. Reports from The Motley Fool and Yahoo Finance noted the increasing confidence in AMD’s position in AI acceleration markets. Conversely, skepticism emerged from Bank of America and Michael Burry, who warned that AI valuations may have overshot fundamentals. This divergence underscores a maturing cycle in AI investing — shifting from exuberant speculation to selective optimism grounded in real revenue potential.