$NVIDIA(NVDA.US) $AMD(AMD.US)

If semiconductors are the “new oil” of today’s economy, then their potential upside could still be significant—especially when compared to the energy sector’s peak weight of nearly 30% in the S&P 500 during the 1980s.

The core logic behind this analogy is clear: just as oil was the foundational driver of global industrial growth in the last century, chips now serve a similarly strategic and indispensable role in powering the AI revolution and the broader digital economy.If this thesis holds, the recent surge in semiconductor stocks may only mark the beginning of a much longer structural trend.

That said, it’s important to note that the sector’s current market capitalization is heavily concentrated in a few dominant players—most notably NVIDIA and Broadcom—which together account for the lion’s share of the semiconductor index.