SOXX, SMH, and FTXL outperform as hyperscaler AI spending drives semiconductor supply chain growth through 2030.
Three U.S.-listed semiconductor ETFs have surged in 2024, led by First Trust Nasdaq Semiconductor ETF (FTXL) with a 99% year-to-date return. iShares Semiconductor ETF (SOXX) and VanEck Semiconductor ETF (SMH) posted gains of 87% and 65%, respectively, as AI capital expenditures fuel demand across chip designers, foundries, and equipment makers.
Hyperscaler AI spending is projected to grow at nearly 25% annually through 2030, distributing investment across the semiconductor supply chain. SOXX tracks 30 U.S.-listed chip stocks, while SMH holds 25 names with exposure to Taiwan Semi and ASML. FTXL emphasizes semicap equipment and memory stocks, including Micron, with $1.48B in assets under management.
The ETFs differ in construction, reflecting distinct segments of the AI-driven semiconductor market. SOXX and SMH offer broad exposure, while FTXL’s factor-weighted approach targets specific subsectors, driving its outperformance in 2024.