**The iShares Semiconductor ETF (NASDAQ: SOXX) has seen a remarkable 108% return in 2026, outpacing the S&P 500’s 10% gain, driven by surging demand for AI-related chips and components. The ETF holds just 30 stocks, with its top 10 holdings, including Micron Technology and Nvidia, representing 62.2% of its portfolio.**
**Micron Technology leads the pack, with expectations of a tenfold increase in earnings and over threefold revenue growth for its fiscal third quarter, set to be reported on June 24. Meanwhile, Intel’s CPUs are benefiting from heightened demand due to their suitability for AI workloads.**
**As the global semiconductor shortage persists, the market faces potential shifts; Alphabet’s CEO has flagged rising AI costs from customer feedback, hinting that demand may taper off. Investors should be cautious despite the ETF’s strong historical performance, which has averaged a 14.9% annual return since 2001, surpassing the S&P 500’s 8.5%.**
5 Stocks Our Experts Predict Could Double In the Next Year
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