MW A major chip index has doubled this year despite Nvidia ranking dead last

By Hannah Pedone

'Nvidia has gotten so large that its ability to beat expectations has gotten much smaller,' an analyst says

Nvidia and Broadcom have been the worst-performing stocks in the PHLX Semiconductor Index so far in 2026.

The PHLX Semiconductor Index has now doubled this year, without much help from two of its biggest players.

Nvidia (NVDA) ranks dead last on a year-to-date basis within the 30-stock index, according to Dow Jones Market Data. Its stock has risen only 14% so far this year, while fellow chip giant Broadcom $(AVGO)$ ranks second-to-last with its 15% gain.

The PHLX Semiconductor Index SOX is on pace for its best first-half showing on record, up 106% so far this year.

D.A. Davidson analyst Gil Luria told MarketWatch that back when graphics processing units had been the main bottleneck for the artificial-intelligence buildout, Nvidia "led the AI trade." But since then, several other bottlenecks have emerged.

Nvidia "continues to be the most important company in the AI buildout," Luria said. Yet investors "see more leverage" in other chip companies, "where they believe the value is not yet fully reflected," he said.

For Seaport Research analyst Jay Goldberg, who's been bearish on Nvidia's stock for an extended stretch, the lagging performance now seems to match his longstanding view.

"Nvidia is underperforming because the other companies in the sector have more room for upside," he told MarketWatch. "Nvidia has gotten so large that its ability to beat expectations has gotten much smaller."

The index's top 2026 performers, as measured by percentage gains, are Micron Technology $(MU)$, up 324% this year; Intel $(INTC)$, up 282%; Arm Holdings $(ARM)$, up 273%; and Marvell Technology $(MRVL)$, up 262%. S

Micron has seen its earnings skyrocket this year, and analysts expect something to the tune of an 1,000% increase in adjusted earnings per share when the company posts May-quarter results later this week. Profits are booming thanks to soaring prices of memory chips.

And Intel's strong first-half performance builds on solid gains seen toward the end of last year, after the U.S. government took a stake in the company. Shares of Intel are up over 560% in the past 12 months, boosted by support from the White House, signs of manufacturing progress and momentum for its central processing units.

Marvell, too, has benefited from AI chip demand, though the company also sells connectivity and networking equipment, and that's been a hot area as well.

See also: This little-known AI stock has beaten Micron and Arm this year, and now it's extending its lead

-Hannah Pedone

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June 22, 2026 16:40 ET (20:40 GMT)

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