This ETF Could Turn $250,000 into $1 Million as AMD, Nvidia, and Broadcom Power the AI Boom

AI CHIPS ETF SMASHES RECORDS—AMD, NVIDIA, BROADCOM FUEL UNPRECEDENTED GROWTH

The Triple Threat Dominating Silicon

Nvidia's processors chew through AI workloads like nothing else—data centers can't get enough. AMD's next-gen architectures push performance boundaries while cutting power consumption. Broadcom's networking chips become the invisible backbone connecting it all.

From Quarter-Million to Million-Dollar Territory

This ETF bundles the explosive potential of semiconductor giants riding the AI wave. It captures the entire ecosystem—from GPU manufacturers to infrastructure specialists. The math works if AI adoption keeps its blistering pace.

Wall Street's Latest Darling—Or Another Overhyped Vehicle?

Sure, the projections look juicy—until you remember finance's favorite game: selling dreams wrapped in expense ratios. But this time, the underlying tech might actually justify the hype.

Bet big on silicon brains—just don't forget they're still traded by human ones.

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The ETF Bets on on AI Hardware Leaders

The iShares Semiconductor ETF is laser-focused on chipmakers that design and supply the parts powering today’s AI infrastructure. Nvidia, AMD, and Broadcom are among its largest holdings, each making up more than 8% of the portfolio.

AMD has been gaining traction with its MI350 GPUs, now adopted by Oracle’s (ORCL) data centers. Its upcoming MI400 chips, expected in 2026, promise tenfold power improvements. Nvidia still holds the crown with its Blackwell Ultra GPUs, which dominate AI reasoning models and bring in twelve times more revenue than AMD in the data center. Broadcom adds a different angle with custom AI accelerators and high-speed networking equipment like its Tomahawk Ultra switches.

These three stocks have delivered an average return of 550% since the start of the AI boom in 2023. Their performance is a key reason the ETF has become one of the most powerful ways to get in on the semiconductor action.

The Fund Has a Strong Track Record

Since its launch in 2001, the iShares Semiconductor ETF has returned an average of 11.4% annually, easily beating the S&P 500’s (SPX) 8.5% over the same period. More recently, the fund has surged at an even faster pace, delivering 24.1% annualized returns in the last decade as cloud computing, enterprise software, and AI adoption skyrocketed.

At that growth rate, a $250,000 investment could become $1 million in just seven years. Even at its long-term historical pace of 11.4%, the ETF could hit the same milestone in about 13 years.

AI Spending Could Keep the Rally Alive

Of course, sustaining 24% growth over the long haul is no easy task, especially as giants like Nvidia face the law of large numbers. But the semiconductor industry still has room to grow. Nvidia CEO Jensen Huang recently said AI infrastructure spending could reach $4 trillion by 2030. If he is right, demand for chips—and the companies that make them—could remain strong for years.

That leaves the iShares Semiconductor ETF in a sweet spot. By spreading exposure across 30 chipmakers, it provides investors with a diversified way to capture the growth of AI while protecting against the volatility that comes with picking a single stock.

Is the iShares Semiconductor ETF (SOXX) a Good Buy?

Wall Street remains constructive on the iShares Semiconductor ETF, with 31 analysts weighing in over the past three months. The fund currently carries a Moderate Buy consensus, backed by 25 Buy ratings, five Holds, and just one Sell.

The average 12-month SOXX price target sits at $273.57, which represents about a 12% upside from the latest price.