01 The background

Chip Stocks Had Their Best Quarter on Record

Funds were not buying quietly. They were buying into the strongest three months the chip sector has ever had, and there is a specific reason it happened.

+87.8%

the Philadelphia Semiconductor Index, its best quarter since it began in 1994

Price move 31 March – 30 June 2026

+14.9%

S&P 500

The whole market

+87.8%

Chip index (SOX)

Its best quarter since 1994

+216%

Intel

AMD rose 186%

Why the index moved like that

AI demand ran into a supply wall

The bottleneck was memory: the chips AI servers need in bulk. A new fab takes years to build, so supply could not respond.

So prices rose, and profits followed

Micron’s quarterly revenue more than quadrupled in a year, from $9.3bn to $41.5bn. That is the engine behind the share prices, not sentiment.

Doing nothing still looked 15% bigger

Rising values are mostly the market going up, which is why this report counts how many funds bought a stock rather than what a holding is worth.

Funds were buying the best-performing corner of the market at the end of its best quarter on record. Every number that follows should be read with that in mind.