The iShares Semiconductor ETF allocates nearly half its portfolio to Nvidia, AMD, Broadcom, Micron, and Intel as AI infrastructure spending surges.
The iShares Semiconductor ETF (SOXX) has concentrated 40% of its holdings in five major chipmakers—Nvidia, AMD, Broadcom, Micron, and Intel—reflecting the sector’s push into artificial intelligence. The ETF has surged 330% since early 2023, driven by demand for AI-driven data center infrastructure.
SOXX holds just 30 U.S.-based semiconductor stocks, focusing on companies designing, manufacturing, and distributing chips for AI and other megatrends. Nvidia CEO Jensen Huang projects data center operators could spend $4 trillion annually on AI infrastructure by 2030, underscoring the sector’s growth potential.
The ETF’s performance mirrors the broader semiconductor rally, with top holdings benefiting from increased capital expenditure in AI hardware and networking components.