1. Nvidia CEO Jensen Huang predicts annual spending on data center infrastructure and chips will surpass $1 trillion by 2028 due to the increasing power of artificial intelligence (AI) models, requiring more computing capacity.
2. The iShares Semiconductor ETF, which holds top suppliers of AI chips and components, is currently delivering exceptional returns, with Nvidia and AMD being two of its largest holdings driving market-crushing performance.
3. Nvidia and AMD are key players in the AI hardware market, with Nvidia’s market cap skyrocketing to $4.2 trillion on the back of strong sales of its GPUs designed for AI reasoning models. AMD poses a threat in the data center market with its CDNA 4 GPU architecture rivaling Nvidia’s offerings.
4. Broadcom, a major supplier of networking equipment for data centers, also produces custom AI accelerators for tech giants like Alphabet, offering an alternative to ready-made GPUs in the market. Other leading AI hardware stocks in the iShares Semiconductor ETF include Micron Technology, Taiwan Semiconductor Manufacturing, and Arm Holdings.
5. The iShares Semiconductor ETF has historically delivered strong returns, and projections show the potential for substantial gains over time by investing regularly. While sustaining high returns may be challenging, the ETF is positioned to benefit from the growing demand for advanced chips due to AI applications.
6. Investors considering the iShares Trust – iShares Semiconductor ETF should weigh its performance against other top stock picks identified by The Motley Fool’s Stock Advisor analyst team, which have the potential to generate significant returns in the coming years. Joining Stock Advisor provides access to top stock recommendations and historical returns for informed investing decisions.

Read more at Nasdaq: Here’s How Nvidia and AMD Could Help This Super Semiconductor ETF Turn $500 Per Month Into $1 Million