AMD, Nvidia, and Broadcom Could Supercharge This Unstoppable ETF: Turn $250K Into $1 Million by 2025
Semiconductor giants are fueling an ETF revolution—and savvy investors are taking notice.
Powering the AI Boom
AMD's processors, Nvidia's GPUs, and Broadcom's networking chips form the backbone of artificial intelligence infrastructure. These aren't just tech stocks—they're the picks and shovels of the digital gold rush.
The Math Doesn't Lie
A $250,000 position in this ETF targets $1 million returns. That's 4x growth potential driven by compute demand that shows zero signs of slowing. Forget traditional valuation metrics—we're playing by Silicon Valley rules now.
Wall Street's Sleeping Giant
While hedge funds overcomplicate portfolios with derivatives and debt instruments, this ETF cuts through the noise. It's a pure-play on computational power—the one asset class even bankers can't syntheticize into oblivion.
The bottom line? Sometimes the best trade is betting on the obvious—especially when the obvious keeps hitting all-time highs.
Image source: Getty Images.
A complete portfolio of AI hardware stocks
The iShares Semiconductor ETF invests in companies that design, manufacture, and distribute chips and components, but especially those that stand to benefit from megatrends like AI. Therefore, its top three holdings should come as no surprise:
|
1. AMD |
9.77% |
|
2. Nvidia |
8.57% |
|
3. Broadcom |
8.17% |
Data source: iShares. Portfolio weightings are accurate as of Aug. 29, 2025, and are subject to change.
AMD's newest lineup of graphics processing units (GPUs), called the MI350 series, is being adopted by leading data center operators like. The company will up the ante in 2026 with the MI400, which could be 10 times more powerful. But AMD's AI opportunity transcends the data center, because it's also a leading supplier of AI chips for personal computers, which could be a major growth market in the future.
Despite the competitive threat from AMD, Nvidia still has a decisive edge in data centers thanks to its latest Blackwell Ultra GPUs, which are the Gold standard for AI reasoning models. These chips are 50 times more powerful than the company's original Hopper AI GPUs, which led the industry in 2023. Nvidia generates around 12 times more data center revenue than AMD, which highlights its incredible market share.
Broadcom designs AI accelerators (a type of data center chip) for hyperscale cloud providers like's Google Cloud. These chips can be customized to suit specific workloads, so they offer more flexibility than traditional GPUs. But Broadcom is also a leading supplier of data center networking equipment, like its latest Tomahawk Ultra Ethernet switch, which provides industry-leading low latency and high throughput to drive faster processing speeds in AI workloads.
Since the beginning of 2023, which is when the AI boom started gathering momentum, the above three stocks have delivered an average return of 550%, with each of them crushing the:
NVDA data by YCharts.
And the iShares ETF holds a number of other top AI hardware stocks, including, which supplies some of the industry's best storage and memory chips, and, which fabricates many of the AI chips designed by companies like Nvidia and AMD.
Turning $250,000 into $1 million
The iShares Semiconductor ETF has delivered a compound annual return of 11.4% since its inception in 2001, comfortably outpacing the average annual gain of 8.5% in the S&P 500 over the same period.
And the fund generated an accelerated compound annual gain of 24.1% over the last 10 years, thanks to the proliferation of technologies like cloud computing, enterprise software, and AI, which continue to drive explosive demand for chips.
Here's how long it could take the iShares ETF to turn an investment of $250,000 into $1 million, based on three different compound annual returns.
|
$250,000 |
11.4% |
13 Years |
|
$250,000 |
17.7% |
9 Years |
|
$250,000 |
24.1% |
7 Years |
Calculations by author.
A continued annual return of 24.1% over the long term WOULD be a very big ask for this ETF -- or any ETF -- because there is no such thing as infinite growth. Nvidia, for instance, is already the world's largest company, and its revenue growth is starting to decelerate because there are only so many new customers capable of buying enough chips to move the needle.
With that said, the semiconductor industry as a whole can still grow materially from here if AI infrastructure spending hits $4 trillion by 2030, as Jensen Huang predicts, so the iShares ETF is likely still a great buy. Adding it to a diversified portfolio of other ETFs and individual stocks can protect against some of the volatility that is typical in high-growth industries like AI.
