Wall Street Maintains Bullish Stance on Semiconductors Amid AI Spending, as U.S. Treasury Yields Hit 18-Month High

According to Yahoo Finance and Wall Street analysts on July 26, semiconductor stocks remain attractive amid sustained AI infrastructure spending by major technology companies including Google, Amazon, Meta, and Microsoft. Mark Mahani, head of internet research at Evercore ISI, stated that hyperscale companies possess substantial cash reserves and leverage capacity to invest in AI infrastructure beyond current market expectations.

However, analysts recommend selective stock picking within the semiconductor sector. D.A. Davidson's Gil Luria noted that AMD, Intel, and optical companies are valued to reflect strong cycles through 2030, while Micron and NVIDIA are priced as if their current cycle has ended, presenting potential value opportunities. The Federal Reserve's interest rate decisions emerge as a key variable, with U.S. 10-year Treasury yields reaching 4.7%, the highest since January 2025, and 30-year yields exceeding 5%, at levels unseen since 2007.