Shares of the iShares Semiconductor ETF (SOXX) surged last year, up 40% according to S&P Global Market Intelligence. Top holdings Nvidia, AMD, and Broadcom drove the gains, with Micron seeing a tripling in stock value due to high-demand AI chips. The ETF looks poised for another strong year in 2026.

The SOXX’s performance mirrored the Nasdaq Composite, dipping in March before rebounding as the AI trade gained momentum. Micron, Nvidia, and AMD make up over 7% of the fund each, with Micron’s HBM chips driving profits. The ETF rebalances yearly, providing an advantage over individual stocks.

The outlook for the SOXX remains positive as semiconductors are crucial to advancing technology, with chip demand continuing to rise. Year-to-date, the ETF is up 11.8%, signaling potential market outperformance. The AI sector is expected to thrive in 2026, with Taiwan Semiconductor Manufacturing reporting strong results.

Considerations for investing in iShares Trust – iShares Semiconductor ETF include the Motley Fool Stock Advisor team not ranking it among the top 10 stocks to buy. Past recommendations like Netflix and Nvidia have seen substantial returns, with Stock Advisor’s total average return at 955% compared to 196% for the S&P 500. Join an investing community for more insights.

Read more at Nasdaq: Why the iShares Semiconductor ETF (SOXX) Jumped 40% in 2025