Summary: The SGX semiconductor sector delivered an 18% return in Q2 2025, outperforming the broader market as sector rotation favored technology and AI-related stocks.
Q2 2025 Performance Summary
The SGX semiconductor sector delivered a stellar 18% return in the second quarter of 2025, significantly outperforming the broader Singapore market's 7% gain. The sector was the top-performing category on the SGX, driven by sustained AI demand and improving global semiconductor industry fundamentals.
Sector Rotation Dynamics
Q2 witnessed a notable sector rotation from defensive and REIT stocks into technology and semiconductor names. Institutional investors reallocated an estimated S$2.5 billion into SGX tech stocks during the quarter, with semiconductor-related counters capturing the majority of flows.
Capital Flow Trends
Foreign institutional inflows into SGX semiconductor stocks reached S$1.8 billion, the highest quarterly figure on record. North American and European funds were the primary sources, seeking exposure to Asian semiconductor growth at reasonable valuations.
