The Philadelphia Stock Exchange Semiconductor Index rose about 65% for the year, its largest annual gain since 2009. The index closed lower on Friday but remained close to a record high. Wolfspeed was the only one of the index's 30 components to decline. At the end of 2023, benefiting from the explosion of artificial intelligence (AI), the stock prices of chip manufacturers have skyrocketed, and the stocks of U.S. semiconductor companies have recorded their best annual performance in more than a decade.

Specifically,The Philadelphia Stock Exchange Semiconductor Index rose about 65% for the year, its largest annual gain since 2009. The index closed lower on Friday but remained close to a record high.

The most eye-catching giant in 2023 is Nvidia. Amid booming demand for AI chips, Nvidia's stock price more than tripled, becoming the first chipmaker with a market value of more than $1 trillion. The semiconductor industry has ushered in a new king in 30 years. Nvidia has become the undisputed leader in the field of artificial intelligence chips. Its revenue this year is expected to surpass Intel and Samsung and become the first in the industry.

AMD, another major player in the AI ​​field, ranks second among the constituent stocks of the Philadelphia Semiconductor Index in terms of share price growth, with a cumulative increase of more than 127% during the year. AMD follows Nvidia's lead and releases new high-end chips that are better at processing the large data sets involved in artificial intelligence training than traditional computer processors.

Wolfspeed was a big loser among chipmakers, the only one of the 30 components of the Philadelphia Semiconductor Index to fall, having lost about 37% of its market value this year. The company, which makes power modules for electric vehicles, faced production difficulties at its new factory and gave a disappointing forecast.

ARM, a chip design company with a new IPO in September this year, has also performed extremely well recently. Although its initial performance was weak, with the strong rebound of U.S. stocks since October, ARM has risen by more than 60% from its low point during the year, and has frequently hit new highs since its listing in recent days.

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