A server delivery robot is displayed at the NVIDIA exhibition booth at CES 2026 in Las Vegas on Jan. 8, 2026. / Courtesy of News1

U.S. semiconductor stocks extended their rally on Wednesday despite surging oil prices and escalating geopolitical tensions in the Middle East, reinforcing Wall Street’s view that the artificial intelligence (AI) investment boom is overpowering broader macroeconomic risks.

The Philadelphia Semiconductor Index (SOX) jumped 2.59% to close at 12,081.04, marking another record high. The index climbed as high as 12,108.67 during intraday trading.

Shares of Micron Technology surged 7.01%, while NVIDIA gained 1.86%. Qualcomm rose 3.4%, setting a new all-time closing high.

Intel also climbed 3.24% to close at $128.03, after hitting a record intraday high of $132.75. Intel shares had already soared roughly 14% on June 8 following reports that Apple may partner with the chipmaker on semiconductor production.

The semiconductor sector was the top-performing group within the S&P 500 on the day, as investor demand tied to AI infrastructure continued to accelerate. Analysts said competition among companies developing AI models is driving explosive demand for data centers, graphics processing units (GPUs), and memory chips.

Market watchers noted that AI infrastructure investment has increasingly become a standalone market theme, moving beyond earnings results or headline-driven momentum.

Ross Mayfield, investment strategist at U.S. investment firm Baird, told Reuters that “semiconductor and AI infrastructure trades now have a life of their own,” adding that some stocks are moving largely independent of news developments or company announcements.

Investors largely brushed aside mounting Middle East tensions during the session.

Earlier, U.S. President Donald Trump rejected Iran’s proposed ceasefire terms as “totally unacceptable,” saying negotiations were effectively “on life support.” Brent crude oil prices subsequently surged above $104 per barrel.

Still, markets remained focused on AI-related growth momentum rather than geopolitical risks.

Jay Hatfield, chief executive officer of Infrastructure Capital Advisors, told CNBC that the technology stock rally had become so powerful that investors were largely ignoring the economic impact of higher energy prices.

“The market is effectively looking past the Middle East situation,” Hatfield said. “Right now, the AI boom is preventing equities from meaningfully pulling back.”

Strong first-quarter earnings have also supported the semiconductor rally. According to LSEG IBES data, 83% of S&P 500 companies reporting earnings so far have exceeded analyst expectations.

Companies tied to semiconductors, cloud computing, and data center infrastructure have shown particularly strong earnings growth as AI investment accelerates.

Investors are now closely watching upcoming earnings reports from Applied Materials and Cisco Systems later this week, while NVIDIA’s earnings release later this month is expected to be a key test of whether the AI-driven rally can continue.

U.S. semiconductor stocks extended their rally on Wednesday despite surging oil prices and …

Semiconductor Shares Hit New Highs as AI Boom Outweighs Rising Oil and Geopolitical Risks