Precious Metals Performance - Precious metals, particularly silver, have shown significant gains in 2025, with silver up 154% year-to-date as of December 26, while gold and copper increased by 72% and 42% respectively [2] - Investors who held onto precious metals after a sharp pullback in early April have been rewarded, indicating a strong recovery in the market [1] Market Outlook for 2026 - The outlook for precious metals in 2026 suggests continued volatility, with expectations of price fluctuations despite potential increases [3] - Factors influencing the market include the recent decline in oil prices, which have reached near five-year lows, potentially affecting the overall commodities market [4] Sector Performance - The S&P 500 index has returned 19.4% for the year, with the semiconductor sector showing a notable return of 45.5% [4][6] - The communications sector has outperformed expectations, driven by major tech players like Alphabet Inc. and Meta Platforms Inc., which returned 66.6% and 14.4% respectively [5]

Core Insights - The semiconductor sector is outperforming the software sector, with the VanEck Semiconductor ETF up 33% year to date, significantly surpassing the returns of the iShares Expanded Tech-Software Sector ETF [8]. Semiconductor Industry Overview - The VanEck Semiconductor ETF has broken through the $300 resistance level, which is now expected to act as a support level, with a target of reaching $365 by early 2026 [2]. - The ETF has shown remarkable consistency, avoiding any losing streak longer than three weeks over the past 18 months [2]. Company-Specific Insights - **Nvidia**: - Nvidia has gained 32% year to date and is currently trading at $182.75. The stock is consolidating after a significant surge and remains just 1% below its all-time high [4][5][8]. - A bullish double-bottom-with-handle pattern is forming, with a potential breakout trigger at $184.65, and the stock could reach around $200 by mid-fourth quarter [4]. - **Broadcom**: - Broadcom is up 44% year to date, trading at $334.67. The stock has experienced a recent pullback but is positioned for a potential year-end rally, with a target of $400 [6][7][8]. - The stock is nearing its 50-day simple moving average, which could serve as a constructive entry point [6]. - **Applied Materials**: - Applied Materials has increased by 25% year to date, currently trading at $208.60. The stock has shown strong recovery after a correction and is about 5% below its 52-week high [9][10]. - A bullish inverse head-and-shoulders formation is forming, with a target of $275 in the first quarter, as long as the stock holds above $185 [9].