The market’s attention is glued to Big Tech, but the real opportunity might be hiding in plain sight. A quiet corner of the market is benefiting from AI, onshoring, and fresh government support: semiconductor stocks.

These stocks have not one but two powerful tailwinds pushing them higher…

On the supply side, Washington’s $280 billion CHIPS Act is reshaping the industry by bringing manufacturing back to U.S. soil. On the demand side, artificial intelligence is fueling record-breaking growth in chip usage worldwide.

Together, they create one of the strongest long-term setups we’ve seen in years. I’ll explain…

Supply-Side Tailwind: The CHIPS Act

Washington finally woke up to how dangerous it was to outsource chipmaking to Asia. The result: the CHIPS Act — Uncle Sam’s $280 billion push to bring manufacturing back home. The goal: reduce reliance on Asia, secure supply chains, and make sure the U.S. stays competitive in the global tech race.

That’s why giants like Intel, Taiwan Semiconductor Manufacturing Company, and Samsung are now building massive new fabs (short for fabrication plants, where semiconductors are manufactured) in Arizona, Texas, and beyond.

And it’s not just the mega-cap names. Jason Fieber just bought shares of a U.S.-headquartered OSAT provider (outsourced semiconductor assembly and test). The company recently announced a $2 billion investment in a new Arizona facility that will create 2,000 jobs. Packaging and testing may not sound exciting, but they’re critical steps in the chip supply chain. Without them, designs from Nvidia, AMD, or Qualcomm never make it into your phone, car, or server rack.

In short: supply is being secured at home, reducing risk and laying the foundation for future growth.

Demand-Side Tailwind: AI

While Washington shores up supply, Wall Street is chasing demand — and AI is the engine.

Want proof? Just look at the VanEck Semiconductor ETF (SMH). It’s up more than 40% since May, handily outperforming the S&P 500’s 18% return over the same stretch.

Why are these stocks soaring? Because AI is driving unprecedented demand.

  • McKinsey projects a 3.5x surge in AI data center demand — a $6.2 trillion opportunity.
  • Analysts estimate $3–4 trillion in AI factory infrastructure will be built out over the next decade.
  • Big-ticket deals are pouring in: Oracle’s $300B cloud partnership with OpenAI, Broadcom’s $10B tie-up with OpenAI, and Nvidia-led investments in the UK totaling £11B.

The Takeaway

Put together with secure supply, this demand surge creates a rare one-two punch: capacity at home and explosive global growth. This isn’t just a cycle — it’s a secular megatrend. Invest accordingly.

Good investing,
Greg Patrick

P.S. Jason Fieber is already taking advantage. Just yesterday he initiated a brand-new position in a U.S.-based OSAT leader that works with Apple and Qualcomm, is expanding in Arizona, and has already doubled its dividend since 2021. He also added to two other high-quality holdings — a global professional services firm and a leading display technology company — growing both his portfolio and its income stream.

If you want to know the exact stocks Jason is buying — and get an alert every time he makes a trade — you can join his Patreon for just $8/month. You’ll also get full access to his entire portfolio (valued at $807,561.72 as of September 2025) and the analysis behind every move. Click here to check it out.

Source: Dividends & Income