Investing in AI through ETFs: iShares Semiconductor ETF
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
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: 216.610
Low
200.00
Averages
264.97
High
352.00
Current: 216.610
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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- Strong Financial Performance: In Q4 of fiscal 2026, Nvidia reported revenue of $68.1 billion, reflecting a 73% year-over-year increase, while gross margin expanded to 75.2%, indicating that the company's strategic pivot towards AI has significantly enhanced its profitability.
- Future Growth Potential: Nvidia anticipates revenue of $78 billion for Q1 of fiscal 2027, representing a growth rate of approximately 77%, and CEO Jensen Huang projects at least $1 trillion in revenue from Blackwell and Vera Rubin chip sales by the end of 2027, highlighting robust market demand.
- Attractive Valuation: Despite Nvidia's recent stock rebound, it trades at just 26 times forward earnings, suggesting that with high double-digit revenue and profit growth, it remains an opportune time to invest in Nvidia, especially as its market cap is projected to exceed $7 trillion by the end of 2026.
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- Security Deposit: The company has paid a security deposit exceeding $3.6 million as part of the agreement, which not only underscores its commitment to the new office space but also lays a foundation for future business growth.
- Leasing Scale: This transaction ranks among the largest office leasing deals in Bengaluru, more than doubling Nvidia's known office footprint in India, thereby further solidifying its position in the local market.
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- Opportunities in the AI Era: With the rise of artificial intelligence, Apple faces new challenges, particularly in hardware innovation, as Cook's successor Ternus will need to maintain the competitiveness of core products while exploring new AI-driven markets.
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See More
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- Rise of AI Technology: With the rapid advancement of artificial intelligence, companies like Intel are seizing new market opportunities in 2026, as evidenced by Intel's stock hitting an all-time high, reflecting strong demand for AI infrastructure that could reshape market competition.
- Challenges in Product Innovation: Under Cook's leadership, Apple has been relatively conservative in innovation, failing to launch new products like the
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- Tech Stock Pressure: Technology stocks are under pressure due to concerns over the return on massive investments in artificial intelligence, as OpenAI recently failed to meet its new user and sales targets, leading to declines in shares of partners like Nvidia and Oracle, reflecting market caution regarding the future of the AI sector.
- Positive Economic Data: The US consumer confidence index unexpectedly rose to 92.8, surpassing expectations of 89.0, indicating an increase in consumer confidence that could positively impact the stock market, although overall market pressures remain.
- Surging Oil Prices: WTI crude oil prices jumped over 3% to a two-week high amid escalating tensions between the US and Iran over the Strait of Hormuz, potentially deepening the global energy crisis and impacting inflation expectations and stock performance.
- Fed Policy Expectations: The market anticipates that the Federal Reserve will maintain interest rates at the upcoming meeting, despite increased uncertainty regarding future policy adjustments due to inflation and oil price volatility, reflecting investor caution about the economic outlook.
See More
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- Market Share Advantage: Nvidia commands a staggering 92% of the data center GPU market, positioning the company to capture a $2.5 trillion opportunity from the projected $7 trillion in capital expenditures over the next five years, thereby solidifying its industry leadership.
- Strong Financial Performance: In Q4 of fiscal 2026, Nvidia reported revenue of $68.1 billion, reflecting a 73% year-over-year increase, while gross margin expanded to 75.2%, indicating that the company's strategic pivot towards AI has significantly enhanced its profitability.
- Future Growth Potential: Nvidia anticipates revenue of $78 billion for Q1 of fiscal 2027, representing a growth rate of approximately 77%, and CEO Jensen Huang projects at least $1 trillion in revenue from Blackwell and Vera Rubin chip sales by the end of 2027, highlighting robust market demand.
- Attractive Valuation: Despite Nvidia's recent stock rebound, it trades at just 26 times forward earnings, suggesting that with high double-digit revenue and profit growth, it remains an opportune time to invest in Nvidia, especially as its market cap is projected to exceed $7 trillion by the end of 2026.
See More
Nvidia Leases 760,000 Sq Ft Office Space in India for $130M
- Expansion Strategy: Nvidia's Indian subsidiary has leased approximately 760,000 square feet of office space in Bengaluru's Mahadevpura area under a 10-year agreement valued at over $130 million, highlighting its aggressive expansion in India's AI and engineering ecosystem.
- Security Deposit: The company has paid a security deposit exceeding $3.6 million as part of the agreement, which not only underscores its commitment to the new office space but also lays a foundation for future business growth.
- Leasing Scale: This transaction ranks among the largest office leasing deals in Bengaluru, more than doubling Nvidia's known office footprint in India, thereby further solidifying its position in the local market.
- Lease Commencement: The lease commenced on April 1, 2026, covering 12 floors at Bagmane Capital's Memphis South Tower, marking Nvidia's long-term commitment to the Indian market.
See More
Nvidia Unveils New AI Model Nemotron 3 Nano Omni for Enhanced Agent Efficiency
- Model Launch: Nvidia has introduced the Nemotron 3 Nano Omni model, designed to assist developers in creating more capable AI agents by integrating vision, audio, and language capabilities into a single system, enhancing multi-tasking efficiency.
- Efficiency Boost: The model enables AI agents to be up to nine times more efficient, allowing them to process screen recordings, analyze audio, and check data logs through one comprehensive system, significantly reducing task completion times.
- Adoption by Clients: Companies such as Palantir, Dell, Infosys, Docusign, Oracle, Foxconn, and H Company have already begun adopting the Nemotron 3 Nano Omni, indicating strong market recognition and demand for this technology.
- Market Impact: H Company CEO Gautier Cloix stated that the application of Nemotron 3 Nano Omni not only enhances speed but fundamentally shifts how agents perceive and interact with digital environments in real-time, signaling a major advancement in AI technology.
See More
Apple's CEO Tim Cook to Retire Amid AI Challenges and Opportunities
- Cook's Leadership Legacy: Apple's CEO Tim Cook announced his retirement later this year, marking the end of nearly 15 years of leadership during which Apple's market cap soared from $600 billion to nearly $3 trillion, highlighting his contributions to stability and sustained growth.
- Opportunities in the AI Era: With the rise of artificial intelligence, Apple faces new challenges, particularly in hardware innovation, as Cook's successor Ternus will need to maintain the competitiveness of core products while exploring new AI-driven markets.
- Intel's Resurgence: Intel reported strong earnings in 2026, with stock hitting an all-time high due to surging demand for CPUs, underscoring the company's pivotal role in AI infrastructure development and its potential to benefit from the growing need for high-performance computing.
- SaaS Market Turmoil: ServiceNow's earnings triggered market panic, leading to a widespread decline in related stocks, despite its report showing solid growth potential, reflecting investors' heightened sensitivity to AI impacts, which may result in short-term market volatility.
See More
Apple CEO Tim Cook to Retire Amid AI Era Transition
- Cook's Leadership Legacy: Apple CEO Tim Cook announced his retirement later this year, and while his tenure has seen immense success for the company, investor concerns about future leadership and innovation direction may impact stock price stability.
- Rise of AI Technology: With the rapid advancement of artificial intelligence, companies like Intel are seizing new market opportunities in 2026, as evidenced by Intel's stock hitting an all-time high, reflecting strong demand for AI infrastructure that could reshape market competition.
- Challenges in Product Innovation: Under Cook's leadership, Apple has been relatively conservative in innovation, failing to launch new products like the
See More
US Stock Market Volatility Amid Economic Data
- Tech Stock Pressure: Technology stocks are under pressure due to concerns over the return on massive investments in artificial intelligence, as OpenAI recently failed to meet its new user and sales targets, leading to declines in shares of partners like Nvidia and Oracle, reflecting market caution regarding the future of the AI sector.
- Positive Economic Data: The US consumer confidence index unexpectedly rose to 92.8, surpassing expectations of 89.0, indicating an increase in consumer confidence that could positively impact the stock market, although overall market pressures remain.
- Surging Oil Prices: WTI crude oil prices jumped over 3% to a two-week high amid escalating tensions between the US and Iran over the Strait of Hormuz, potentially deepening the global energy crisis and impacting inflation expectations and stock performance.
- Fed Policy Expectations: The market anticipates that the Federal Reserve will maintain interest rates at the upcoming meeting, despite increased uncertainty regarding future policy adjustments due to inflation and oil price volatility, reflecting investor caution about the economic outlook.
See More
