iShares Semiconductor ETF (SOXX) Surges 40% Last Year Driven by AI Boom
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: Fool
- Market Performance: The iShares Semiconductor ETF (SOXX) surged 40% last year, reflecting the ongoing AI boom, with strong performances from top holdings like Nvidia, AMD, and Broadcom driving the overall increase.
- Holdings Analysis: Among SOXX's top holdings, Micron, Nvidia, and AMD each account for over 7%, with Micron's stock tripling last year due to skyrocketing demand for high-bandwidth memory chips, highlighting its robust position in the AI sector.
- Future Outlook: The AI industry is expected to continue its strong growth into 2026, and SOXX, which tracks the PHLX Semiconductor Index and rebalances annually, may outperform the market as semiconductor demand remains high.
- Year-to-Date Performance: As of January 15, SOXX is already up 11.8% year-to-date, indicating strong momentum at the start of the year, and barring a collapse in the AI boom, it is poised to outperform the market again.
Analyst Views on AMD
Wall Street analysts forecast AMD stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for AMD is 281.78 USD with a low forecast of 200.00 USD and a high forecast of 350.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
37 Analyst Rating
27 Buy
10 Hold
0 Sell
Moderate Buy
Current: 227.920
Low
200.00
Averages
281.78
High
350.00
Current: 227.920
Low
200.00
Averages
281.78
High
350.00
About AMD
Advanced Micro Devices, Inc. is a global semiconductor company. The Company is focused on high-performance computing, graphics and visualization technologies. Its segments include Data Center, Client and Gaming, and Embedded. Data Center segment includes artificial intelligence (AI) accelerators, microprocessors (CPUs) for servers, graphics processing units (GPUs), accelerated processing units (APUs), data processing units (DPUs), Field Programmable Gate Arrays (FPGAs), smart network interface Cards (SmartNICs) and Adaptive system-on-Chip (SoC) products for data centers. Client and Gaming segment includes CPUs, APUs, chipsets for desktops and notebooks, discrete GPUs, and semi-custom SoC products and development services. Embedded segment includes embedded CPUs, GPUs, APUs, FPGAs, system on modules (SOMs), and Adaptive SoC products. It markets and sells its products under the AMD trademark. Its products include AMD EPYC, AMD Ryzen, AMD Ryzen PRO, Virtex UltraScale+, and others.
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.
