Microsoft, Amazon, Alphabet, Meta, and Oracle plan an 81% increase in capital spending by 2026, driving semiconductor sector growth.
Microsoft, Amazon, Alphabet, Meta Platforms, and Oracle have committed to nearly $700 billion in capital expenditures for 2026, an 81% jump from the prior year. The spending surge aims to meet rising semiconductor demand, benefiting key exchange-traded funds in the sector.
The VanEck Semiconductor ETF (SMH) and iShares Semiconductor ETF (SOXX) dominate the space, while the Invesco PHLX Semiconductor ETF (SOXQ) gains traction. SMH offers a concentrated AI infrastructure play, while SOXQ is the lowest-cost option. SOXX faces a tougher investment case due to its structure.
SMH tracks 25 stocks with a mega-cap tilt, including Nvidia at 15.55% of holdings. SOXX holds 30 names with position limits, favoring smaller companies like Micron at 11.04% of its portfolio.