First Trust Nasdaq Semiconductor ETF

FTXL

Market cap $2.5B

Equities extend gains as earnings and semiconductors lead markets higher. Consumer confidence remains subdued despite economic resilience.

After three years of hyperscaler capital spending feeding through to chip designers, foundry capacity, and lithography backlogs, the semiconductor ETF complex has separated into distinct buckets.

Looking for broad exposure to the Technology - Semiconductors segment of the equity market? You should consider the First Trust NASDAQ Semiconductor ETF (FTXL), a passively managed exchange traded fund launched on September 20, 2016.

Nvidia Corporation remains the linchpin of the AI-driven semiconductor sector, underpinning structural shifts in industry valuation and cyclicality. The semiconductor industry is transitioning from cyclical to increasingly non-cyclical, driven by AI, cloud, automation, and automotive demand. Memory stocks like STX and WDC have experienced dramatic re-ratings, reflecting the market's new view on their cyclicality and growth prospects.

Some exchange-traded funds offer the safety of diversification at the expense of eye-popping returns. This year, returns are the story, especially at funds that hold big slugs of red-hot chip shares.

Several years ago, semiconductor ETFs were often viewed as a Nvidia (NVDA) story. With Nvidia driving much of the group's growth and performance, some investors questioned the need for broader exposure.

The semiconductor sector continues to absorb capital at a pace tied to the AI infrastructure buildout, and three exchange-traded funds offer distinct angles on it: iShares Semiconductor ETF (NASDAQ:SOXX | SOXX Price Prediction), VanEck Semiconductor ETF (NASDAQ:SMH), and First Trust Nasdaq Semiconductor ETF (NASDAQ:FTXL).

Big Tech is doubling down on AI, with 2026 capex estimates hitting $725B (per Yahoo Finance). Ride the spending boom with tech, semiconductor and AI-focused ETFs.

INTC stock jumps 24% after Q1 earnings beat, as AI-driven growth and product launches fuel momentum, making semiconductor ETFs an attractive play.

The Philadelphia semiconductor index, known as SOX, is on a historic run, fueled by chip stocks hitting new highs.