economy

April 14, 2026

Chips are emerging as market leaders once again. Where the charts signal they are going

Todd Gordon takes a look at semiconductors.

Chips are emerging as market leaders once again. Where the charts signal they are going

TL;DR

  • The Nasdaq-100 has experienced an eight-week sell-off followed by a recovery towards new highs.
  • Semiconductors are currently driving market gains, leading to debate about narrow leadership versus an AI revolution.
  • Lower U.S. yields, a weaker U.S. Dollar Index (DXY), and decreasing crude oil prices could encourage investment rotation into international and emerging markets.
  • The S&P 500 / iShares MSCI Emerging Markets ETF (EEM) ratio is at a critical level, with a break below $112 suggesting emerging markets may outperform the U.S.
  • Semiconductor stocks (SMH) have shown similar rally patterns in 2020-2022 and 2023-2024, with the latter exhibiting a steeper angle of ascent.
  • The author owns SMH personally and for clients.

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