An examination of recent monthly return profiles shows that the recent dispersion and outperformance by semiconductors versus their technology subsector peers has reached historic levels.

Yesterday’s (4/16) Daily Equity Report highlighted the recent improvement in U.S. equities, as well as the recent ascension within semiconductors that has helped spark the rebound. Additionally, the report noted that while there has been abrupt near-term improvement within technology—primarily semiconductors—the long-term relative strength leadership has not shifted back to the stature seen at the beginning of 2026. Much of this is due to other technology subsectors failing to exhibit similar levels of upside participation as their semiconductor counterparts. While this may not be a new theme to some, an examination of recent monthly return profiles shows that the recent dispersion and outperformance by semiconductors versus their technology subsector peers has reached historic levels.

Examining the 1-month, 3-month, and 6-month rolling returns for the NDW Semiconductors Index (DWASEMI) against the NDW Software Index (DWASOFT), NDW Internet Index (DWAINET), and NDW Computers Index (DWACOMP)—going back to the beginning of 1999—highlights the recent technology performance trends that began in early 2026, as well as the historic outperformance of semiconductors relative to their peers. Prices examined were month-end prices, and although the month of April still has time remaining, returns through 4/16 are included to help convey the recent performance trends that have emerged.

Above each table are notable highlights from the recent performance trends.

1-Month Rolling Returns (Month-End Data)

• Through 4/16, semiconductors are outperforming software and internet stocks by more than 20%, while outperforming computers by more than 10% for the month of April.
• The only other time monthly performance between semiconductors and software eclipsed 20% in favor of semiconductors was January 2026, with a peak of 26%.
• Semiconductors have outperformed internet stocks by more than 20% on five other occasions, with two instances seeing excess performance exceed 30% (December 2000) and 70% (April 2000).
• Semiconductors have outpaced computers by more than 10% a total of 18 times, with many occurrences from 1999 to 2008. More recent instances were observed in November 2021 and 2022, as well as January and February 2026. Only twice—June 1999 and February 2000—has the spread between semiconductors and computers exceeded 20% in favor of semiconductors.

3-Month Rolling Returns (Month-End Data)

• Through 4/16, semiconductors are outpacing software stocks by more than 40% on a 3-month rolling basis, while internet and computer stocks are being outpaced by 29% and 24%, respectively.
• Semiconductors have outperformed software counterparts by more than 40% during the past two 3‑month rolling periods, with excess returns peaking at 51% in February. Should excess returns exceed 40% at the end of April, it would mark the first time that three consecutive 3‑month rolling periods surpassed this threshold since beginning of data in 1999.
• Semiconductors have outperformed internet stocks by more than 30% during 13  3‑month rolling periods dating back to 1999. February and March 2026 are among those periods and should excess returns remain above 30% by the end of April, it would mark the second time—and first since mid‑2000—that three consecutive 3‑month rolling periods exceeded this level.
• Outperformance by semiconductors over computers exceeded 25% during a 3‑month rolling period on seven occasions, two of which occurred in February and March 2026. Should April close with semiconductors again outpacing computers by at least 25%, it would mark the first such three‑period streak since mid‑2000.

6-Month Rolling Returns (Month-End Data)

• Through 4/16, semiconductors are outpacing software, internet, and computer stocks by more than 50% on a 6‑month rolling basis.
• Semiconductors have outperformed software by more than 50% during each of the past three 6‑month rolling periods, dating back to January of this year. The only other instance prior to 2026 in which 6‑month excess returns exceeded this level occurred in June 2000. As of 4/16, the 6‑month rolling excess return in favor of semiconductors reached an all‑time high of 76%.
• Semiconductors have outpaced internet stocks by more than 50% during ten prior 6‑month rolling periods dating back to 1999. Should April close with semiconductors again outperforming internet stocks by more than 50%, it would mark the third such occurrence in four months during 2026.
• Semiconductors have outgained computers by more than 50% on a 6‑month rolling basis on five prior occasions, all of which occurred between February and June of 2000.

Given semiconductors’ superior performance in recent months and their apparent role in sustaining much of the broader technology sector’s current strength, investors will continue to closely monitor exposure to both the subsector and the broader sector.