Is the iShares Semiconductor ETF a Viable Long-Term Investment Amid AI Boom?
The iShares Semiconductor ETF (SOXX) has outperformed the broader market with a 130% gain over five years, dwarfing the S&P 500's 82% return. Focused on U.S. chip designers and manufacturers, the fund offers concentrated exposure to AI-driven growth through holdings like AMD, NVIDIA, and Intel—though its 30-stock portfolio may unsettle risk-averse investors.
Semiconductor valuations now hover at historic highs, raising questions about the ETF's future upside. Yet the sector remains central to AI infrastructure development, suggesting sustained demand. Market participants debate whether current prices already reflect this potential.