U.S. Chip Stocks Start 2024 with Decline Following Record-Breaking 2023

Despite recent downturn, Bank of America remains bullish on the semiconductor industry.

U.S. chip stocks have started 2024 with a decline, following a record-breaking surge in 2023.
Major chip companies such as Advanced Micro Devices Inc, Qualcomm Inc, and Broadcom Inc saw a drop of more than 2%, causing a 2.1% decrease in the PHLX semiconductor index.
In 2023, the PHLX semiconductor index rose by 65%, driven by enthusiasm for artificial intelligence and expectations that the Fed would reduce interest rates.
AI chip leader NVIDIA Corp tripled its stock market value to $1.2 trillion in 2023, making it the fifth most valuable company on Wall Street.
Despite the recent downturn, Bank of America maintains a bullish stance on the semiconductor industry for 2024.