However, Wolfspeed Inc., a manufacturer of power modules for electric vehicles, saw a 37% decline in shares due to underwhelming performance forecasts and production challenges. ARM Holdings, known for smartphone chip design, entered the public market in September and, despite initial volatility, saw a nearly 60% increase in shares since October.
Key takeaways:
- The semiconductor industry experienced its most significant surge in over a decade in 2023, primarily driven by chip manufacturers' role in AI development.
- The Philadelphia Stock Exchange Semiconductor Index soared by 65% in 2023, marking the most substantial annual gain since 2009.
- Nvidia Corp stood out with its extraordinary performance, with shares more than tripling in value, making it the first chipmaker to surpass the $1 trillion mark in market capitalization.
- Despite the overall success of the semiconductor industry, Wolfspeed Inc. saw its shares fall by 37% throughout the year due to underwhelming performance forecasts and production challenges.