Micron’s 64% EPS guidance increase drives semiconductor ETF optimism, outweighing Qualcomm’s forecast cut.
The iShares Semiconductor ETF (SOXX) gained momentum after 73.8% of its holdings by weight raised earnings or revenue guidance. Micron Technology (MU), the fund’s largest holding at 8.4%, led the charge with a 64% EPS guidance increase, offsetting Qualcomm’s downward revision.
Only 6.3% of SOXX’s holdings lowered forecasts, while the remainder held steady. Eighteen of the largest positions guided higher, compared to just two cutting expectations, signaling broad-based strength in the sector.
The shift reflects confidence among semiconductor heavyweights, with Micron’s revision carrying significant weight due to its outsized position in the ETF. The fund’s composition amplifies the impact of upgrades from top holdings.