In January, shares of the iShares Semiconductor ETF (NASDAQ: SOXX) rose 12%, driven by strong performance from companies like Micron (NASDAQ: MU) and TSMC, as well as high demand for memory chips and AI infrastructure. Forecasts show DRAM and NAND flash prices surging, with memory giant Micron’s stock jumping 45.6%.

The AI boom has led to increased demand for memory and storage chips, benefiting companies like Nvidia (NASDAQ: NVDA) and Broadcom (NASDAQ: AVGO). TSMC’s blowout earnings and capital spending forecasts, along with rising memory prices, have also boosted the semiconductor sector.

Despite a strong January, the SOXX is down 4.6% this month, possibly due to profit-taking after AMD’s underwhelming earnings guidance. However, capital spending forecasts from major cloud companies suggest continued growth in AI infrastructure buildout, benefiting semiconductor stocks in the long term.

Investors should consider the growth potential of semiconductor stocks like iShares Semiconductor ETF, as the AI boom and increased capital spending are expected to drive further gains in the sector. Companies like Micron, TSMC, Nvidia, and Broadcom are well-positioned to benefit from ongoing demand for memory and storage chips.

Read more at Yahoo Finance: Why the iShares Semiconductor ETF Rallied 12% in January