Key Highlights

● The semiconductor index rose for a fourth straight session.

● Memory makers led the rally after SK hynix's record results.

● Chip-equipment stocks also rallied on capacity expansion hopes.

● Nvidia lagged even as the broader sector climbed.

The Philadelphia Semiconductor Index rose for a fourth straight session, making technology the best-performing sector in the S&P 500 and helping the Nasdaq-100 outpace every other major benchmark. The index, often called the SOX, tracks 30 of the largest US-listed companies that design, make and sell chips and chipmaking equipment.

The latest leg of the rally came from South Korea, where SK hynix reported a record quarter, with quarterly revenue surpassing 100 trillion won for the first time and profit jumping more than sevenfold, saying it sees the memory shortage lasting into 2030.

Memory and Equipment Led

Micron Technology, the largest US memory maker, climbed strongly, Sandisk jumped and Seagate Technology rose after reporting its own results. Chip-equipment makers, which supply the tools used to build chips, also rallied, with Lam Research and Applied Materials both climbing sharply, since investors often view those companies as beneficiaries when chipmakers expand capacity.

Nvidia, the most valuable chipmaker, slipped during the regular session, lagging the broader rally, a split that suggested investors were favoring memory and equipment names most directly tied to supply shortages.

A Rally in the Face of a Hawkish Fed

The chip gains came despite a challenging backdrop for growth stocks, as the Federal Reserve left its benchmark rate range unchanged but two officials dissented in favor of a hike, and long-dated Treasury yields climbed past a key psychological threshold.

The streak faced a test after the bell, however, when Alphabet slid sharply in extended trading after missing estimates, even as it raised its 2026 capital spending forecast, a development that could ultimately benefit chip suppliers even as investors focused on the earnings miss.