AI Spending Fuels Chip Rally as US Stocks Diverge

Chip stocks tied to AI infrastructure bounced this week after a BofA analyst projected the global semiconductor market could hit $3.2 trillion by decade's end, dismissing fears of a spending slowdown. Multiyear customer contracts for chips reinforce the view that demand remains structurally strong rather than cyclical.

Not every AI-adjacent name is participating. Oracle shares fell for a fifth consecutive session, missing the broader chip-sector bounce entirely and highlighting stock-specific weakness even as sentiment toward AI infrastructure spending improves.

The divergence signals investors are becoming more selective, rewarding companies with direct exposure to semiconductor demand while punishing those seen as lagging on execution or growth visibility.