The US stock market kicked off the new year with a bang this week. The three major indices surged simultaneously, with the Dow Jones Industrial Average at 49,462.08 points (up 0.99%), the Nasdaq at 23,547.17 points (up 0.65%), and the S&P 500 at 6,944.82 points (up 0.62%). Both indices broke their all-time highs, with the Dow even touching 49,509.92 points during trading.

Honestly, this rally is mainly supported by tech stocks. Members of the "Big Seven" like Amazon rose 3.37%, directly boosting the overall index. But the real standout was the chip sector — Micron Technology surged over 10% in a single day, and Palantir also gained more than 3%.

The most incredible performance was from Micron. By the third trading day of the year, the stock had already increased approximately 18%. Looking back, this company has achieved over 240% growth in 2025, making it a monster-level rally.

Why are chip stocks so popular? Baird investment strategist Ross Mefield's view is quite interesting — he said that tech stocks were a bit weak at the end of last year, but no one denies that AI is a disruptive technology. Currently, chip stocks are leading the charge, which is in line with expectations, but cyclical rotations are still ongoing. In simple terms, as long as the AI hype continues, the story of chips can go on.