iShares Semiconductor ETF

SOXX

Market cap $38.6B

A $10,000 position in Invesco Semiconductors ETF (NASDAQ:PSI) on the last trading day of 2025 was worth ~$20,496 by the close on May 26, 2026, and that is the kind of arithmetic that ruins dinner parties.

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

The raging semiconductor rally received another boost this week when UBS analyst Timothy Arcuri raised his price target on Micron Technology Inc. NASDAQ: MU to a stunning $1625, nearly triple its previous target.

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.

Thomas Poullaouec, Head of Global Investment Solutions, International at T.Rowe Price, says he does not foresee a slowdown in the demand for memory chips despite rising prices.

Huawei's new chip design principle focused on boosting transmission speed rather than continuing to shrink semiconductors offers a path for China to build cutting-edge chips ​despite U.S. sanctions, though whether it represents a true breakthrough remains to be seen.

Applied Materials CEO Gary Dickerson said the semiconductor industry is experiencing its strongest period ever. He said artificial intelligence is driving unprecedented computing demand and long-term growth.

High-bandwidth memory has become the choke point in the AI buildout, as NVIDIA's Blackwell accelerators rely on stacked DRAM modules that only three companies can produce at scale, and the order books for those modules are reportedly stretching past 2027.

Shares of chipmakers are rallying this year While the AI spending boom is fueling big gains for lots of tech companies, it's the semiconductor makers that are truly in the chips these days.

One hundred thousand dollars dropped into Direxion Daily Semiconductor Bull 3X Shares (NYSEARCA:SOXL) on May 28, 2025 was worth around $1.28 million by the close on May 27, 2026.