iShares Semiconductor ETF

SOXX

Market cap $15.7B

Over the last five years, the S&P 500 has more than doubled with a 116% total return. The technology sector -- led by such companies as Nvidia, Microsoft, Apple, Broadcom, and Oracle -- is up even more at 160%.

AI hyperscaler capex is set to nearly triple to $1.4T by 2027, fueling a multi-year demand wave for semiconductors and infrastructure. Top AI ETFs - SMH, XSD, SOXX, WTAI and SMHX - offer diversified or targeted exposure to leading beneficiaries of the AI infrastructure buildout. All five highlighted ETFs earn Buy Quant ratings, with strong momentum, low expenses, and high liquidity, making them attractive for both short- and long-term investors.

Semis were headed for a tepid Q3 2025, but a strong September propelled Q3 2025 higher to ensure momentum is on their side at the start of Q4 2025. A number of developments in the latter part of Q3 2025 gave semis a boost, but how they play out in the long term remains to be determined.

iShares Semiconductor ETF remains a Buy for balanced, diversified exposure to the AI-driven semiconductor sector, avoiding overconcentration risks. AI investment is accelerating, with hyperscalers' capex reaching record highs, but funding is increasingly reliant on debt and vendor financing. SOXX offers exposure to leaders like Nvidia, AMD, and Intel, plus essential suppliers, providing resilience amid sector volatility and geopolitical shifts.

The 10y CAGR of iShares Semiconductor ETF is 21%, a return clearly superior to the S&P 500 Index. Its characteristic and distinctive feature is greater exposure to fabless chip designers (Nvidia, AMD, Broadcom) with. The forward P/E over 10 and 30 years is near the top of the distribution, which makes it relatively expensive, and the CAGR could decline compared to its historical level. But the profit margins of the companies it holds are high, with positive EPS surprises and growing guidance.

The iShares Semiconductor ETF (SOXX) was launched on 07/10/2001, and is a smart beta exchange traded fund designed to offer broad exposure to the Technology ETFs category of the market.

How the US chip embargo may have helped China become a global semiconductor player. The battle between the US and China for chip dominance.

There are plenty of ways to invest in artificial intelligence (AI).

Semiconductor ETFs like XSD, SOXX and SMH hit 52-week highs as AI mega investments, NVIDIA's Intel deal & quantum contracts fuel sector momentum.

If you check out a list of the best-performing stocks over the past decade or so, you probably won't be surprised to find multiple semiconductor stocks on it, such as Nvidia, Advanced Micro Devices, and Broadcom.