2023 Year Recap | Top Performing Sector: Tech Companies Lead the Way, With Nvidia Surging by Over 200%

Approaching the end of 2023, the US stock market has continued to reach new highs. Looking at sector performance, the technology sector has risen by over 70% year-to-date, primarily due to the surge in AI demand and strong earnings growth from some of the Magnificent Seven stocks — $Apple (AAPL.US)$, $NVIDIA (NVDA.US)$, and $Microsoft (MSFT.US)$. The consumer discretionary sector follows closely behind, with a cumulative increase of nearly 48% YTD.

Technology stocks are perennially one of the hottest areas of the stock market. Excitement surrounding the significant development of generative artificial intelligence (AI) technology has been a key factor driving the current surge in US stocks. Among the technology sector, $Super Micro Computer (SMCI.US)$ has experienced the highest increase, with an impressive gain of nearly 300% in this year.

In addition, the semiconductor industry has undoubtedly been the most dazzling sector in the US stock market this year. As of December 18th, the $PHLX Semiconductor Index (.SOX.US)$ has seen a cumulative increase of 62%, breaking historical records and outpacing the three major stock indices by a significant margin.

Among its constituent stocks, aside from Nvidia, $Advanced Micro Devices (AMD.US)$ and $Broadcom (AVGO.US)$ have also doubled their share prices in 2023.