Your Semiconductor Stock Cheat Sheet For May

• 13 of 25 best-performing S&P 500 stocks in May (last 10 years) are semiconductor companies, with 11 being SOX index components
• Five major chip stocks report earnings in May 2026: Nvidia, ON Semiconductor, Microchip Technology, Analog Devices, and Applied Materials, with options markets pricing 12.3% moves for some
• The VanEck Semiconductor ETF (SMH) has averaged 6.8% May returns over the last decade with a 90% win rate

Summary

Key Market Performance:

The PHLX Semiconductor Index (SOX) recently completed an 18-day winning streak, gaining nearly 45% before a brief pullback. The index reclaimed the $500 level in early May 2026, while the Nasdaq Composite reached 25,000. During this rally, Nvidia (NVDA) contributed a 22% gain, pushing its 14-Day RSI near overbought territory.

Historical May Seasonality:

Analysis of the past 10 years shows semiconductor stocks historically outperform in May. Of the top 25 S&P 500 performers during this month, 13 are semiconductors, with 11 being SOX components. NVDA leads with a 17.4% average May return and 90% win rate. The VanEck Semiconductor ETF (SMH) averages 6.8% May returns with a 90% win rate.

Key Companies Highlighted:

• Nvidia (NVDA): Strong historical performance driven by May earnings releases
• Applied Materials (AMAT): High Volatility Scorecard of 92, forming double bottom pattern
• Broadcom (AVGO): Top relative strength leader with low implied volatility
• ON Semiconductor (ON): 7.7% short interest with 19 of 33 analysts holding neutral ratings
• Microchip Technology (MCHP): 5.2% short interest, high volatility scorecard of 94

Upcoming Catalysts:

Five companies report earnings in May: NVDA, ON, MCHP, ADI, and AMAT. Options markets are pricing significant moves for ON and MCHP—approximately double their historical post-earnings averages of 12.3%.

Market Implications:

Despite inflation concerns and geopolitical tensions, historical patterns suggest semiconductor stocks may continue outperforming through May, particularly those reporting earnings during this seasonally strong period.