The semiconductor sector is experiencing a significant rally, with the SOXX ETF up over 4.5%. The primary driver is a much stronger-than-expected Q3 earnings report from AI cloud infrastructure company CoreWeave, released after the close on Tuesday. CoreWeave's massive revenue growth and record backlog have eased recent market fears of a slowdown in AI-related spending, providing a strong positive signal for chip demand. The news has sparked a broad-based rally across major semiconductor stocks including NVIDIA, AMD, and Micron.