The semiconductor sector is poised for a cyclical recovery, boosted by AI development with EPS growth forecasted at 32% for 2025. Despite a 12-month gain of 30%, the sector remains attractively valued with a 25% upside potential for 2025, supported by consensus price targets. The sector's high EPS growth does not come at an expensive price, with a 23x P/E target under a 1.0x PEG ratio, indicating room for expansion.
Artificial intelligence (AI) might be the most revolutionary technology in a generation. Depending on which Wall Street forecast you rely on, AI could add $7 trillion (Goldman Sachs), $15.7 trillion (PwC), or even $200 trillion (Ark Investment Management) to the global economy over the coming decade.
SOXX has had an underwhelming 2024. It is closely correlated to MSFT which shows how much it relies on the hyperscalers. A large head and shoulders top is forming and the uptrend channel has broken. The technicals reflect a potential bearish shift.
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.
Investing in ETFs can be a powerful way to diversify your portfolio, but knowing which ones to buy (and which to sell) is an important question to ask.
This exchange-traded fund could be a millionaire-maker as the artificial intelligence revolution gathers steam.
SMH and SOXX offer exposure to a highly attractive semiconductor space that strives in the ongoing AI revolution. AI's increasing demand drives semiconductor growth, with both ETFs' holdings like NVIDIA and Broadcom providing essential hardware for AI advancements. Investors who choose to avoid cherry-picking in the first place should be better off with SOXX as it offers a higher degree of diversification than comparable SMH.
Looking to sharpen or diversify your portfolio? Check out two exchange-traded funds that could offer both stability and long-term growth potential.
If you're tempted to buy the dip on the broad basket of semiconductor stocks but aren't quite sure which names to go after, perhaps an exchange-traded fund (ETF) can help you gain the exposure you need in a cost-effective manner.
The iShares Semiconductor ETF offers diversified exposure to semiconductor companies, with a management fee of 0.35%, a beta of 1.59, and a P/B of 5.25x. The semiconductor market is expected to grow significantly, driven by computing, data storage, wireless, and automotive industries, potentially reaching $1 trillion by the decade's end. Despite the sector's growth potential, SOXX's short-term revenue volatility and a small margin of safety in PEG suggest strategic stock allocation may be optimal.
Designed to provide broad exposure to the Technology - Semiconductors segment of the equity market, the iShares Semiconductor ETF (SOXX) is a passively managed exchange traded fund launched on 07/10/2001.
The semiconductor sector led Tuesday's losses, with Nvidia losing nearly $110 billion in market cap. Christopher Danely, Citi head of US semiconductor research, joins Catalysts Hosts Seana Smith and Madison Mills to discuss the recent weakness and what it says about the chip sector.