If you're interested in broad exposure to the Technology - Semiconductors segment of the equity market, look no further than the iShares Semiconductor ETF (SOXX), a passively managed exchange traded fund launched on 07/10/2001.
Launched on 07/10/2001, the iShares Semiconductor ETF (SOXX) is a smart beta exchange traded fund offering broad exposure to the Technology ETFs category of the market.
The semiconductor sector is the main driver of the information technology segment of the S&P 500, and SOXX appears to represent it very well. Key catalysts include the U.S.–Saudi deal and easing U.S.–China trade tensions, which reduce sector risks and support bullish growth projections. So I believe this justifies the sector's early-year growth expectations, before the "Liberation Day."
Semiconductors are the beating heart of the artificial intelligence (AI) revolution. Graphics processing units (GPUs), AI accelerators, high-bandwidth memory, and networking equipment fill modern data centers, delivering the computing capacity developers need to create advanced AI software.
Semiconductors have been the best sub-sector to own over the past decade, with ETFs like SOXX and SMH offering outperforming total returns. I prefer SOXX over SMH due to its more diversified holdings. Despite recent pullbacks, semiconductors remain crucial for AI, autonomous vehicles, and other advanced technologies, making them a compelling investment at this drawdown that is only second to 2022.
Looking for broad exposure to the Technology - Semiconductors segment of the equity market? You should consider the iShares Semiconductor ETF (SOXX), a passively managed exchange traded fund launched on 07/10/2001.
The semiconductor market has been going through a downfall since the beginning of the year, with SOXX ETF down 12% to date. Amid the continued growth of the semiconductor industry, the fund has a reasonable exposure to benefit from the ICs demand. The mainstream adoption of AI technology is still loading and requires significant spending on high-performance hardware.
A smart beta exchange traded fund, the iShares Semiconductor ETF (SOXX) debuted on 07/10/2001, and offers broad exposure to the Technology ETFs category of the market.
Late last year, Morgan Stanley issued a forecast suggesting Amazon, Microsoft, Alphabet, and Meta Platforms could spend a combined $300 billion on data center infrastructure and chips to power their artificial intelligence (AI) ambitions during 2025.
Launched on 07/10/2001, the iShares Semiconductor ETF (SOXX) is a passively managed exchange traded fund designed to provide a broad exposure to the Technology - Semiconductors segment of the equity market.
The semiconductor industry faces uncertainty due to U.S.-China trade tensions and the introduction of China's AI competitor, DeepSeek, impacting SOXX's short-term performance. SOXX's momentum has dropped significantly, reflecting recent economic events, but its long-term performance remains strong, warranting a hold rating for now. DeepSeek's emergence challenges OpenAI, potentially spurring innovation in AI, but raises concerns about Chinese censorship and national security.
The author recommends holding the SOXX ETF, which aims to provide exposure to the semiconductor companies segment. Chinese startup DeepSeek has launched its R1 model, which has outperformed competitors like ChatGPT, raising questions about America's leadership in AI and reducing the immediate appeal of semiconductor ETFs. Even with declines in semiconductor stocks, valuation multiples remain above the historical average, and semiconductor ETFs, such as SOXX, are considered risky in this scenario.