ADVANCED MICRO DEVICES INC

BROADCOM INC

MICRON TECHNOLOGY INC

NVIDIA CORP

INTEL CORPORATION CORP

MARVELL TECHNOLOGY INC

APPLIED MATERIAL INC

MONOLITHIC POWER SYSTEMS INC

TEXAS INSTRUMENT INC

LAM RESEARCH CORP

The stock market rallied on Thursday as investors responded optimistically to President Trump's comments about potential negotiations with Iran, easing oil price concerns. The semiconductor sector led gains, with Micron jumping 7.5% following a $3 billion domestic investment announcement. However, software and hyperscaler stocks like Alphabet fell as investors rotated into hardware. Honeywell continued its post-spinoff decline, losing another 9.2%.

Nasdaq Composite Jumps 0.9% as Semiconductors Stage a Comeback

The First Trust Nasdaq Semiconductor ETF (FTXL) is highlighted as an underrated semiconductor investment that uses quality screens and cash flow weighting rather than market cap weighting. This approach filters out high-flying AI stocks with minimal cash flow while favoring established chipmakers with strong fundamentals. The ETF has returned 98% year-to-date and 161% over the past 12 months, outperforming major competitors.

Why This Semiconductor ETF Might Be the Most Underrated AI Play Right Now

Michael Burry, famous for his 2008 housing market short, has opened a short position against the iShares Semiconductor ETF, betting against major chipmakers including Nvidia, Micron, and AMD. Burry argues that semiconductor valuations are excessive with a P/E ratio of 74.3, more than double the Nasdaq-100 tech index, and questions the sustainability of AI infrastructure spending as businesses curb their AI investments.

Michael Burry Just Revealed His Next Big Short, and It's a Bet Against Nvidia, Micron, and AMD

Chip stocks led a Monday rally, with the Nasdaq Composite gaining 1.3% and the S&P 500 rising 0.7%, while the Dow Jones remained flat. Broadcom surged 4.4% after extending its Apple chip supply deal through 2031, and AMD jumped 8% on autonomous driving adoption. However, Microsoft fell 1.4% following announcements of 4,800 job cuts, and the Dow was weighed down by declines in Honeywell and Amgen.

The Dow Couldn't Keep Up With Chip Stocks on Monday

The iShares Semiconductor ETF (SOXX) rose 12.6% in June, driven by three key themes: strong AI chip demand and capital spending, Trump's claims of Intel-Apple U.S. chip manufacturing deals, and Micron's blockbuster earnings revealing exceptional memory chip demand with supply substantially below demand. The ETF's broad-based exposure to 30 semiconductor companies, with capped weightings preventing Nvidia dominance, allowed investors to capture gains across multiple semiconductor plays including Applied Materials, KLA, Intel, and Micron, while some positions like Nvidia and Broadcom declined.

Here's Why This Semiconductor ETF Rewarded Investors in June

The iShares Semiconductor ETF (SOXX) has delivered exceptional returns over the past five years, turning a $1,000 investment into $4,181—significantly outperforming the S&P 500's 86% return. The ETF's success is driven by major semiconductor companies like Nvidia, TSMC, Broadcom, and AMD, which have been among the market's top performers. While the author expects growth to moderate from its current 88% year-to-date pace, SOXX is positioned to continue outperforming the broader market.

If You'd Parked $1,000 in the iShares Semiconductor ETF 5 Years Ago, Here's What You'd Have Today

SOXX is passively managed to provide concentrated exposure to the 30 largest US-listed semiconductor companies. This includes (i) manufacturers of materials with semiconductors that are used in electronic applications or in LED and OLED technology and (ii) providers of services or equipment associated with semiconductors. To be eligible for the index, companies must meet investability and liquidity requirements, including a minimum market-cap of $100 million. The index employs market-cap-weighting with a capping methodologythe weights of the top five securities are capped at 8% and the remaining securities at 4%. SOXX may also hold ADRs, whose cumulative weight in the index is capped at 10%. The fund uses a sampling strategy to track its index, which is reconstituted annually and rebalanced on a quarterly basis. Prior to June 21, 2021, the fund was named iShares PHLX Semiconductor ETF and tracked the PHLX Semiconductor Sector Index

SOXX (SOXX) Stock Price, Analysis & Trade Signals