The SPDR S&P Information Technology ETF (XLK) advanced for the 10th consecutive session on Dec. 5, 2026, marking its longest winning streak since September 2020. The fund gained 3.5% last week, outperforming the broader market, as reported by CNBC.

Unlike typical rallies, mega-cap tech names like Meta Platforms Inc and Alphabet Inc were not the driving force behind XLK’s recent rally. NVIDIA Corp, the top holding of the ETF, gained over 4% last week, contributing to the momentum, according to CNBC.

Chipmakers and software stocks like SanDisk, Salesforce, Adobe, Micron Technology, and Intel led the charge on Dec. 5, 2025, with significant gains. Leaders for the week included companies like Microchip Technology, NXP Semiconductors, and Salesforce, CNBC highlighted.

The World Semiconductor Trade Statistics (WSTS) organization increased its 2025 growth outlook, projecting a more than 25% growth in the global semiconductor market for 2026. Memory and logic segments are expected to lead with over 30% year-over-year growth, as noted by Any Silicon.

The global software market size was $823.9 billion in 2025 and is expected to reach around $2,248.33 billion by 2034, with a compound annual growth rate (CAGR) of 11.8% driven by AI integration, cloud computing, and cybersecurity solutions, according to Precedence Research.

The continued rally of the XLK ETF reflects strength beyond mega-cap tech, with chipmakers and software stocks leading the way. With strong growth forecasts for semiconductors and software, these segments are poised to drive tech sector growth in 2026. VanEck Semiconductor ETF (SMH) and State Street SPDR S&P Software & Services ETF (XSW) are recommended plays.

Read more at Nasdaq: Tech ETF XLK on Its Way for Longest Rally Since 2020: Here’s How