Silicon, Silver & Sky-High Stocks: AI Rally Pushes Markets to New Highs
Global markets extended their rally for a sixth consecutive week, with the S&P 500 and Nasdaq reaching fresh all-time highs as investor optimism around AI infrastructure, strong corporate earnings, and easing geopolitical tensions continued to fuel momentum.
The biggest story of the week remained the accelerating AI trade. Semiconductor and memory-chip companies surged after strong earnings and growing evidence that AI-driven demand is becoming structural rather than cyclical. Companies such as AMD, Micron, and SanDisk benefited from rising expectations around data centre expansion and high-bandwidth memory shortages, while news of a potential Apple and Intel chipmaking collaboration further boosted sentiment across the sector.
Asian markets also posted remarkable gains, led by Japan’s Nikkei and South Korea’s KOSPI, as investors doubled down on AI-related opportunities. Meanwhile, Europe lagged behind amid renewed tariff concerns and weaker economic sentiment in the UK.
In commodities, silver stood out after breaking out of a key technical formation, strengthening the bullish outlook for precious metals. Gold also moved higher, although market behaviour suggests investors are increasingly viewing bullion as a broader risk asset rather than a traditional safe haven.
At the same time, fixed income markets remained volatile as investors weighed sticky inflation, geopolitical developments, and shifting central bank expectations. Markets will now turn their focus toward upcoming US inflation data and UK GDP figures, both of which could shape expectations for the next phase of monetary policy.
As AI enthusiasm continues driving equity markets higher, investors are increasingly balancing growth opportunities against inflation risks and policy uncertainty — setting the stage for another pivotal week in global markets.
This article is based on insights and analysis provided by the TEAM Asset Management.
