The arms race in artificial intelligence (AI) is creating a favorable demand environment for leading semiconductor companies. The PHLX Semiconductor Sector index has soared 122% since bottoming out in 2022, far outpacing the 69% return of the tech-centric Nasdaq Composite.

While the chip industry experiences occasional dips in revenue, the sector has been on a steady upward trajectory since the 1980s. The growing demand for high-performance chips to support the AI server build-out should create many years of strong growth for the leading suppliers.

Here are two top semiconductor stocks with superior return potential over the next decade.

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Source Fool.com