The news regarding the strength of semiconductor stocks is highly relevant for investors, as it reflects current developments in a central and fast-growing sector of the stock market, significantly influenced by global trade and technology trends.
Current Market Development of Semiconductor Stocks
Semiconductor stocks are currently showing remarkable strength, although they have been under pressure in recent months. In particular, the restrictive trade policy of the USA towards China has led to significant sell-offs. However, important technical levels such as the 20-day and 50-day EMAs (exponential moving averages) have been reclaimed, indicating a recovery.
Nonetheless, the 200-day line (200-day EMA) could act as a resistance and hinder further upward potential. This technical hurdle is an important indicator for investors assessing the trend direction.
Impact of Geopolitical Factors
The US tariff policy under the current administration is fundamentally changing the global semiconductor market. While domestic manufacturers like Intel are supported by subsidies through the Chips & Science Act, trade barriers lead to higher production costs and hindered access to the Chinese market.
China is responding with a comprehensive investment program of 140 billion USD to strengthen its own semiconductor industry, as well as a partial export stop for rare earths – raw materials for which China controls about 70 percent of global production. These measures have already triggered price spikes and significantly burden western manufacturers’ margins. Establishing alternative supply chains will take years.
Performance of Individual Companies in the TecDAX
In the TecDAX, some semiconductor companies are showing strong price gains: Elmos Semiconductor recorded a daily performance of +4% on May 8, with a monthly increase of over +26%, followed by Formycon (+3.94% for the day; +6.8% for the month) and HENSOLDT (+3.72% for the day; +24.35% for the month). This highlights the interest in selected technology stocks despite volatile conditions.
Growth Drivers: AI Boom and Rising Demand
A key driver for the positive development in the semiconductor market is the boom surrounding artificial intelligence (AI). The sector is seen as one of the biggest beneficiaries of this technological revolution. Forecasts indicate that global semiconductor revenue will reach a new record of nearly 630 billion USD by 2025 – a clear sign of strong growth potential.
Companies like Nvidia are particularly benefiting from the increasing demand for graphics processors (GPUs), which are essential for AI applications; for example, Nvidia has already recorded about +20% price increase this year alone. Microsoft is also increasingly integrating AI technologies into its cloud services and software solutions.
Conclusion
The strength in semiconductor stocks reflects both short-term technical recoveries and long-term growth opportunities through technological innovations like AI. At the same time, geopolitical risks remain due to trade restrictions between the USA and China, as well as shortages of key raw materials. For investors, this means opportunities for attractive returns while facing increased volatility due to global uncertainties.