June 1st, 2026 | 06:50 CEST
Chip Sector High-Flyers in the New Tech Gold Rush – Where to Invest Now? AMD, Infineon, SpaceX, or DRC Gold
The stock market takes no prisoners. Anyone currently invested in the semiconductor sector is on cloud nine and can hardly imagine the trend reversing. The Philadelphia Semiconductor Index (SOX) provides a useful benchmark for assessing the sector's momentum. Since the start of the year, it has risen from around 3,500 points to more than 12,800 points (+265%). This bears a strong resemblance to the gold price rally between 2023 and 2026, when the precious metal surged from USD 1,650 to USD 5,400 (+227%). As always, it is important to keep the broader backdrop in mind. At present, markets are pricing in supply shortages, but should the Iran conflict end, this assessment could quickly lose steam, and market excesses would then need to be corrected. Gold and silver may provide a good example. Following the irrational rally in the first quarter of 2026, both markets have entered a noticeable consolidation phase. Against this backdrop, it is worth taking a closer look at the underlying dynamics and investment opportunities.
time to read: 5 minutes
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Author:
André Will-Laudien
ISIN:
DRC GOLD CORP. | CA23347H1064 | CSE: DRC , INFINEON TECH.AG NA O.N. | DE0006231004 , ADVANCED MIC.DEV. DL-_01 | US0079031078 , SPACE EXPLORATION TECHNOLOGIES CORP | US000SPACEX0
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Author
André Will-Laudien
Born in Munich, he first studied economics and graduated in business administration at the Ludwig-Maximilians-University in 1995. As he was involved with the stock market at a very early stage, he now has more than 30 years of experience in the capital markets.
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AMD and Infineon: Gold Rush in the Semiconductor Sector
Almost every day, investors find themselves thinking: Surely this cannot continue! Yet it does. Following concerns about supply shortages triggered by the conflict in the Middle East, the semiconductor market has entered an extraordinary revaluation phase. The reason: Prices for AI-relevant chips have risen by more than 300% in some cases over the past 6 months, causing margins at high-tech manufacturers to surge. According to forecasts from research institutes, the global semiconductor market is expected to exceed USD 700 billion in 2026, up from around USD 530 billion in 2023. The main growth drivers are artificial intelligence, data centers, electric mobility, and advancing digitalization. The 15 largest US technology companies alone are expected to invest around USD 1 trillion over the next two years in expanding their cloud and AI infrastructure.
Advanced Micro Devices is among the most notable winners. The company is benefiting from the boom in AI accelerators and high-performance computing. Analysts on the LSEG platform expect annual revenue growth of between 40%-50% over the coming years. Revenue is projected to increase from USD 34.6 billion in 2025 to USD 144 billion by 2029, while the EBIT margin is expected to expand from 24% to more than 40%. The data center segment in particular is emerging as the company's key growth engine and continues to gain market share. The average 12-month price target still stands at a comparatively modest USD 450. Analysts may simply be struggling to keep pace with developments, as the stock was already trading above USD 520 on Friday. The current 2026 P/E ratio of 98 is expected to decline to around 30 within the next three years. Currently, the entry price into this high-yield paradise remains very high!
Infineon Technologies is also at the center of a structural growth trend. The company is one of the world's leading manufacturers of power semiconductors for electric vehicles, renewable energy, and industrial applications. A modern electric vehicle today requires two to three times as many semiconductors as a combustion engine vehicle. At the same time, according to industry studies, the power electronics market is growing at a rate of 10-15% annually. With billions in investments in silicon carbide and gallium nitride technologies, Infineon is positioning itself for the next generation of energy-efficient applications. The stock reached a new all-time high of EUR 83.17 last week and is now leading the DAX in 2026 with 136% growth. Of 30 analysts, 24 are bullish; "Sell" recommendations come from Baader and mwb research with price targets of EUR 58.60 and EUR 60, respectively. Apparently, only Anglo-American investors understand this fairy-tale bull market.
DRC Gold: 4.3 Million Historical Ounces in one of East Africa's Richest Gold Zones
A gold rush of a different kind is brewing in East Africa. DRC Gold is increasingly emerging as one of the most interesting gold stories in the African junior sector. Currently, the company boasts two option agreements covering 65% of two promising gold projects in the Democratic Republic of the Congo. The transaction was finalized in May. By issuing 25 million shares at CAD 0.195, DRC is paying a notional value of approximately CAD 4.9 million and thereby gaining control of the two gold projects, Giro and Nizi.
At the center is the Giro project, covering an area of approximately 497 km² in the renowned Kilo-Moto greenstone belt, one of Africa's most productive gold regions. Just about 35 km away lies one of the continent's largest gold mines, which produces more than 600,000 ounces of gold annually, impressively underscoring the region's geological significance. Historical resource estimates at Giro indicate approximately 4.0 million ounces of gold at an average grade of about 1.0 g/t for the Kebigada deposit alone. The second main zone, Douze Match, extends over approximately 2.6 km and hosts an additional 313,000 ounces of gold with average grades of about 1.2 g/t. Together, this already results in a historical gold inventory of over 4.3 million ounces. Additional value is provided by the 113 km² Nizi Project, which is home to the historic King Leopold Mine. High-grade gold with ore grades exceeding 10 g/t was mined there until 1931. It is noteworthy that large parts of the system have seen little modern exploration for decades, and no current resource estimate is available. With production costs at successful African mines ranging between approximately USD 1,100 and USD 1,300 per ounce, even conservative scenarios would yield exceptionally high operating margins.
The discrepancy between project potential and current valuation is striking. At a share price of around CAD 0.20, DRC Gold is valued at only about CAD 27 million. This translates to approximately CAD 6 per historically reported ounce of gold, a figure that is significantly below the valuation metrics of many comparable exploration companies. The management team led by Klaus Eckhof is among the most experienced in the African commodities sector. For investors, this presents a classic early-stage opportunity: low market capitalization, several million historical ounces in the ground, and an experienced management team with a proven track record. Get in now!
IIF host Lyndsay Malchuk in conversation with founder Klaus Eckhof about the unique opportunities for his gold projects in East Africa.
SpaceX: How Far Along Are Preparations for the IPO?
SpaceX, founded in 2002 by Elon Musk, is making great strides toward listing on the US technology exchange NASDAQ. June 12 is the big day, and a valuation of nearly USD 2 trillion seems a done deal. Ahead of its initial public offering, the company is shining with additional US government contracts. For instance, SpaceX has been positioned by the US Space Force as a key player in the development of the planned "Golden Dome" missile defence system. The latest contract, worth approximately USD 4.16 billion, covers the development of satellite-based sensor technology for target detection and tracking and complements existing projects in the areas of data infrastructure and potential interceptor systems. Currently, government contracts account for about 20% of revenue, providing a solid foundation for the future. The company is not turning a profit yet, but that should not deter tech-hungry investors from sending the stock soaring on the very first day. Things will get interesting in the institutional sector. After all, how are index-linked ETFs supposed to buy their holdings when there is only an 8% free float available on the market? It will be fascinating to see where the "MAG8 stock" stands after a month. A net total of USD 75 billion is being raised. Welcome to the Universe!
Current movements in the tech sector closely mirror the final phase of the 2000 boom. Crucially, however, today's leading tech stocks boast massive profit growth and soaring revenues. Back then, early internet pioneers were valued in the billions based on mere speculation, while the actual digital economy took over a decade to mature. The Neuer Markt, on the other hand, disappeared from the scene quite quickly. While strong earnings justify today's tech valuations, gold remains a highly relevant alternative asset class. Ultimately, healthy diversification is essential to reducing overall portfolio risk.
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