Semiconductor stocks outperformed the broader market by a wide margin in 2023, which is evident from the 66% gain clocked by the PHLX Semiconductor Sector index as compared to the 24% gain of the S&P 500 index as of Dec. 27.

Booming demand for artificial intelligence (AI) chips played a key role in driving the impressive surge in semiconductor stocks this year. Not surprisingly, prominent semiconductor companies such as Nvidia (NASDAQ: NVDA) and Advanced Micro Devices (NASDAQ: AMD) have delivered healthy gains to shareholders in 2023.

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Source Fool.com