Investing in AI through ETFs: iShares Semiconductor ETF
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Apr 28 2026
0mins
Should l Buy NVDA?
Source: Fool
- Strong ETF Performance: The iShares Semiconductor ETF (SOXX) has risen over 45% this year and tripled in value over the past five years, demonstrating robust performance amid increasing AI and tech spending, making it an attractive option for investors.
- Portfolio Structure Analysis: The ETF features a portfolio of 30 stocks, with Broadcom accounting for about 8%, and Nvidia and AMD each making up over 7%, ensuring good exposure to top AI stocks while effectively managing risk through concentrated holdings.
- Reasonable Expense Ratio: With an expense ratio of 0.34%, the iShares Semiconductor ETF offers investors a cost-effective way to gain access to a quality mix of AI stocks, enhancing the overall value of the investment.
- Long-Term Growth Potential: Given the ongoing increase in AI spending, this ETF is viewed as a balanced investment choice that can provide investors with strong long-term returns, particularly in the context of rapid advancements in the tech sector.
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Analyst Views on NVDA
Wall Street analysts forecast NVDA stock price to rise
41 Analyst Rating
39 Buy
1 Hold
1 Sell
Strong Buy
Current: 225.320
Low
200.00
Averages
264.97
High
352.00
Current: 225.320
Low
200.00
Averages
264.97
High
352.00
About NVDA
NVIDIA Corporation is an artificial intelligence (AI) infrastructure company. The Company is engaged in accelerated computing to help solve the challenging computational problems. Its segments include Compute & Networking and Graphics. The Compute & Networking segment includes its Data Center accelerated computing and networking platforms and AI solutions and software, and automotive platforms and autonomous and electric vehicle solutions, including software. The Graphics segment includes GeForce GPUs for gaming and personal computers (PCs), and Quadro/NVIDIA RTX GPUs for enterprise workstation graphics. Its technology stack includes the foundational NVIDIA CUDA development platform that runs on all NVIDIA GPUs, as well as hundreds of domain-specific software libraries, frameworks, algorithms, software development kits (SDKs), and application programming interfaces (APIs). Its platforms address four markets, which include Data Center, Gaming, Professional Visualization, and Automotive.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- New Product Launch: Nvidia has delivered its latest-generation Vera CPU, specifically designed for AI data centers and replacing the Grace CPU, aiming to optimize data handling for large AI workloads through high-bandwidth NVLink connections with Nvidia GPUs.
- Optimistic Market Sentiment: A Stocktwits poll shows that approximately 85% of 4,500 users expect Nvidia to exceed both revenue and profit estimates, although investor views on stock performance post-earnings are mixed, particularly since shares have declined after the last three quarterly reports despite strong results.
- Stock Price Volatility Trend: Nvidia shares have dipped slightly in the last two trading sessions, yet are up nearly 20% year-to-date, with the market eagerly awaiting the upcoming earnings report, which could significantly influence tech stocks and the broader AI trading landscape.
See More
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- Price Target Increase: The investment bank raised Nvidia's price target from $260 to $285, implying a 26% upside from Friday's close, reflecting strong confidence in the company's future growth potential.
- Strong Market Performance: Nvidia's shares have surged 66% over the past 12 months, significantly outperforming the overall market, underscoring the sustained appeal of artificial intelligence as an investment theme and reinforcing its leadership position in the semiconductor industry.
- Supply Chain Advantage: Analysts noted Nvidia's proactive supply chain management places it in an advantageous position compared to peers, with $95 billion in purchase commitments that can cover much of its shipping plans over the next 18 months, enhancing its competitive edge.
See More
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- Nvidia Earnings Anticipation: Ahead of its earnings report, Nvidia confirmed early deliveries of its next-generation AI processors to top-tier AI labs, which could drive performance in AI-related stocks.
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- Significant Technical Edge: Cerebras' Wafer-Scale Engine chip is 58 times larger than Nvidia's B200 chip, delivering up to 15 times faster inference speeds and even achieving 1,000 times faster in certain scenarios, showcasing its disruptive potential in AI computing.
- Rapid Revenue Growth: The company's revenue skyrocketed approximately 2,000% from $51 million in 2022, reflecting strong customer demand for its solutions; however, its reliance on a limited number of customers poses potential risks to its business model.
- Market Competition Landscape: While Cerebras is making strides in the AI market, it still lacks the customer base and market experience of Nvidia, which has been established for over 30 years, raising questions about its ability to sustain growth and profitability in the future.
See More
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- Significant Technical Advantage: Cerebras' Wafer-Scale Engine (WSE) chip is 58 times larger than Nvidia's B200, delivering up to 15 times faster inference speeds and even achieving 1,000 times faster in certain scenarios, showcasing its potential in AI computing and likely attracting more customers.
- Rapid Revenue Growth: The company's revenue skyrocketed approximately 2,000% from $51 million in 2022 to $510 million last year, reflecting strong customer interest in its solutions, and if it can continue to expand its customer base, it will further solidify its market position.
- Customer Dependency Risks: Despite significant revenue growth, 62% of Cerebras' revenue comes from Mohamed bin Zayed University in the UAE, highlighting the risk of high customer concentration, necessitating diversification of its client base to mitigate potential impacts.
See More
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- Key Stock Movements: The trades revealed net purchases of Apple (AAPL) and Alphabet (GOOG), while Tesla (TSLA) was the only stock sold, reflecting a preference for tech stocks and a cautious stance towards Tesla.
- Transparency Issues: Managed by the Trump Organization, which claims no involvement in specific investment decisions, the disclosure noted 27 trades as 'unsolicited', raising questions about transparency and compliance with ethical standards.
- Significant Timing of Trades: On February 10, Trump purchased at least $1 million in Nvidia (NVDA) stock just before the company announced a strategic partnership with Meta, highlighting the close connection between his trading activities and market developments, potentially raising concerns about conflicts of interest.
See More
