<p>The<strong> iShares Semiconductor ETF</strong> <span class="ticker-mention inline-flex items-center font-bold">(SOXX <span class="ml-1 text-green-900">+1.44%</span>)</span> is an exchange-traded fund (ETF) that exclusively invests in American companies that design and manufacture chips and components, but it's particularly focused on those involved in the artificial intelligence (AI) segment of the market.</p>
<p>As a result, the fund has large positions in stocks like <strong>Micron Technology</strong>, <strong>Advanced Micro Devices</strong>, and <strong>Nvidia</strong>, which have contributed to its staggering 108% return in 2026 so far. It's <em>crushing</em> the <strong>S&amp;P 500</strong> <span class="ticker-mention inline-flex items-center font-bold">(^GSPC <span class="ml-1 text-red-900">1.21%</span>)</span> index, which has climbed by just 10% this year. </p>
<p>Is there still time for investors to buy the iShares ETF, or have they missed the boat? The answer isn't as clear-cut as you might think.</p>
<div><img alt="A digital rendering of computer chips, with one labelled AI." width="880" height="587" src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vZWRpdG9yaWFsL2ltYWdlcy84NzQ4MTUvYS1kaWdpdGFsLXJlbmRlcmluZy1vZi1jb21wdXRlci1jaGlwcy13aXRoLW9uZS1sYWJlbGxlZC1haS5qcGcmdz0zODQw?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" original-src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vZWRpdG9yaWFsL2ltYWdlcy84NzQ4MTUvYS1kaWdpdGFsLXJlbmRlcmluZy1vZi1jb21wdXRlci1jaGlwcy13aXRoLW9uZS1sYWJlbGxlZC1haS5qcGcmdz0zODQw"/>
<p>Image source: Getty Images.</p>
</div>
<h2>A concentrated portfolio of America's best chip stocks</h2>
<p>The iShares Semiconductor ETF holds just 30 stocks, so it's highly concentrated. It's also very top-heavy, because its 10 largest holdings represent 62.2% of the value of its portfolio. However, that list includes just about every leading supplier of AI chips and components in the industry:</p><div><div id="foolcom_sidebar_top_container"><div><div><div></div><div></div><div></div></div></div><div></div></div></div>
<div><table><thead><tr><th>
<p>Stock</p>
</th><th>
<p>iShares ETF Portfolio Weighting</p>
</th></tr></thead><tbody><tr><td>
<p>1. Micron Technology</p>
</td><td>
<p>11.21%</p>
</td></tr><tr><td>
<p>2. Advanced Micro Devices</p>
</td><td>
<p>8.98%</p>
</td></tr><tr><td>
<p>3. <strong>Marvell Technology</strong></p>
</td><td>
<p>8.06%</p>
</td></tr><tr><td>
<p>4. <strong>Intel</strong></p>
</td><td>
<p>6.43%</p>
</td></tr><tr><td>
<p>5. <strong>Broadcom</strong></p>
</td><td>
<p>5.63%</p>
</td></tr><tr><td>
<p>6. Nvidia</p>
</td><td>
<p>5.46%</p>
</td></tr><tr><td>
<p>7. <strong>Applied Material </strong></p>
</td><td>
<p>5.35%</p>
</td></tr><tr><td>
<p>8. <strong>KLA Corp</strong></p>
</td><td>
<p>3.93%</p>
</td></tr><tr><td>
<p>9. <strong>Lam Research</strong></p>
</td><td>
<p>3.69%</p>
</td></tr><tr><td>
<p>10. <strong>Qualcomm</strong></p>
</td><td>
<p>3.50%</p>
</td></tr></tbody></table></div>
<p>Data source: iShares. Portfolio weightings are accurate as of June 12, 2026, and are subject to change.</p>
<p>Considering those 10 stocks have produced an average return of 136% this year, it's no surprise the iShares Semiconductor ETF is beating the S&amp;P 500 by a factor of 10. </p><div></div>
<p></p>
<p>MU data by YCharts</p>
<p>Micron Technology stock is leading the way, thanks to explosive demand for the company's high-bandwidth memory (HBM) for data centers, which is a critical piece of the AI hardware stack. Micron is scheduled to report its operating results for its fiscal 2026 third quarter (which ended on May 31) on June 24, and management's guidance suggests revenue more than tripled, while earnings soared <em>tenfold</em>. </p><div><div id="in_line_article_pitch_container"><div><div><div><div></div></div><div><div></div><div></div><div></div></div></div></div><div></div></div></div>
<p>Intel is another top performer, thanks to significant demand for the company's data center central processing units (CPUs), which are better suited to some AI workloads than graphics processing units (GPUs). For example, Intel's CPUs give AI agents the computing power they need to autonomously plan workflows and repeatedly access external software tools. AI is also reviving Intel's foundry business, as customers race to lock in manufacturing capacity amid the global semiconductor shortage.</p>
<p>Nvidia stock has produced a muted return this year, as it consolidates a gain of more than 12-fold since the start of 2023. Demand continues to exceed supply for the company's GPUs, which are still the primary data center chips used in most AI training and inference workloads. As a result, its stock likely has more room for upside.</p>
<h2>Is the iShares Semiconductor ETF still a buy?</h2>
<p>The iShares Semiconductor ETF has delivered a compound annual return of 14.9% since it was established in 2001, outpacing the S&amp;P 500, which returned an average of 8.5% per year over the same period. Therefore, its market-beating performance in 2026 isn't a once-off.</p>
<section><div><div><div><small><div>Expand</div></small></div><div><img alt="iShares Trust - iShares Semiconductor ETF Stock Quote" width="64" height="64" src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vYXJ0L2NvbXBhbnlsb2dvcy9tYXJrL1NPWFgucG5nJnc9MTI4?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" original-src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vYXJ0L2NvbXBhbnlsb2dvcy9tYXJrL1NPWFgucG5nJnc9MTI4"/></div><div><h2>NASDAQ: SOXX</h2><div>iShares Trust - iShares Semiconductor ETF</div></div></div><div><div><div>Today's Change</div><div>(1.44%) $8.49</div><div>Current Price</div><div>$599.73</div></div><div></div></div></div><div><div></div><div><h3>Key Data Points</h3><div><div>Day's Range</div><div>$598.95 - $621.99</div><div>52wk Range</div><div>$221.86 - $629.72</div><div>Volume</div><div>66.6K</div></div></div></div></section>
<p>From that perspective, the iShares ETF looks like a great addition to any diversified portfolio. But there is certainly room for caution right now, given the blistering gains in some of its largest holdings. Micron, for example, is benefiting from one of the biggest supply-demand imbalances for memory chips in history, which is allowing the company to dictate prices. As a result, its profit margins are through the roof.</p>
<p>But this is unlikely to last because the entire industry is working hard to build more manufacturing capacity, and when supply eventually catches up to demand, companies like Micron will struggle to grow their earnings from these elevated levels.</p>
<p>Speaking of demand, there might be some cracks forming. <strong>Alphabet</strong> CEO Sundar Pichai recently said he's fielding complaints about rising AI costs from several customers. Around the same time, the chief operating officer of <strong>Uber Technologies </strong>publicly said it's getting harder to justify his company's AI spending. If this sentiment spreads, it could result in lower demand for chips across the board.</p>
<p>In summary, it isn't necessarily a bad idea to buy the iShares Semiconductor ETF today given its strong track record, but it has never been more important to maintain a long-term investment horizon of five years or more, because the risk of volatility certainly seems to be rising.</p><div id="article_pitch_container"><div><div><div></div><div></div><div></div><div></div><div></div><div></div><div></div></div></div><div></div></div><div id="promobox_container"><div><div><div></div><div></div><div></div><div></div></div></div><div></div></div>

.SPX

NVDA

<p>The iShares Semiconductor ETF (SOXX) has surged 108% in 2026, significantly outperforming the S&P 500's 10% gain, driven by AI-focused holdings like Micron, AMD, and Nvidia. While its long-term track record is strong, caution is advised due to potential supply-demand imbalances and rising customer concerns over AI costs. Investors are encouraged to maintain a five-year horizon to manage increasing volatility risks.</p>

- The iShares Semiconductor ETF focuses on American companies in the chip and AI markets and has delivered a 108% return in 2026, significantly outperforming the S&P 500.  
- With major holdings including Micron Technology and Nvidia, the ETF is benefiting from strong demand for AI-related semiconductor products despite potential future supply increases.  
- While it may still be a good investment, caution is advised as market volatility and changing demand dynamics could impact future performance.

Motley Fool

Micron Tech

S&P 500

NVIDIA

AXS 1.5X NVDA Bear Daily ETF

Direxion Daily MU Bull 2X Shares

Direxion Daily NVDA Bull 2X Shares

iShares Semiconductor ETF

T-Rex 2X Long NVIDIA Daily Target ETF

GraniteShares 2x Long AMD Daily ETF

GraniteShares 2x Long MU Daily ETF

Direxion Daily MU Bear 1X Shares

Direxion Daily AMD Bull 2X Shares

GraniteShares YieldBOOST MU ETF

Defiance Daily Target 2X Short MU ETF

SPDR S&P 500

iShares Core S&P 500

VG S&P 500

SPDR Portfolio S&P 500 ETF

Direxion S&P 500 Bull 3X

Pro UltrPro S&Pro 500

Ultr S&P 500 Pro

Pro Shrt S&P 500

Direxion S&P 500 Bear 3X

Pro UltrPro Shrt S&Pro 500

Proshares Ultrashort S&P500 ETF

Neos S&P 500 High Income ETF

JPMorgan Equity Premium Inc ETF

Global X FDS S&P 500 Covered Call ETF

Direxion Daily AMD Bear 1X Shares

Leverage Shares 2X Long AMD Daily ETF

Defiance Daily Target 2X Short AMD ETF

YieldMax AMD Option Income Strategy ETF

Roundhill AMD WeeklyPay ETF

ProShares Ultra Semiconductor ETF

Direxion Semicon Bull 3X

Proshares Ultrshrt Semicon Pro

Direxion Semicon Bear 3X

GraniteShares 2x Short NVDA Daily ETF

ProShares Ultra NVDA

Direxion Daily NVDA Bear 1X ETF

Leverage Shares 2X Long NVDA Daily ETF

GraniteShares 2x Long NVDA Daily ETF

Leverage Shares 2x Cpd Acclrtd NVDAMnETF

NVDA WeeklyPay ETF - Roundhill

YieldMax NVDA Option Income Strategy ETF

GraniteShares YieldBOOST NVDA ETF

xETFs NVDA Daily Income ETF

XI2CSOPNVDA

XL2CSOPNVDA

T-Rex 2X Inverse NVIDIA Daily Target ETF

YieldMax Short NVDA Option Inc Strgy ETF

XI2CSOPNVDA-U

Roundhill Daily 2X Lon Mag Sev ETF

VanEck Semiconductor ETF

Invesco PHLX Semiconductor ETF

SPDR S&P Semicon

Invesco Semiconductors ETF

First Trust Nasdaq Food & Semicon

The iShares Semiconductor ETF Is Obliterating the S&P 500 in 2026, but Is It Still a Buy? The Answer Might Surprise You.