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SOXX - ETF AI Analysis

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SOXX

iShares Semiconductor ETF (SOXX)

Rating:74Outperform
Price Target:
SOXX, the iShares Semiconductor ETF, earns a solid overall rating largely because many of its biggest holdings—like TSMC, Micron, Nvidia, and Broadcom—show strong financial performance and are well positioned for long-term growth in AI and advanced chip technologies. However, names like Intel, which faces profitability and cash flow challenges, and several holdings with high valuations, slightly weigh on the fund’s appeal. The main risk is the ETF’s heavy concentration in the semiconductor sector, where valuation pressures, export controls, and geopolitical issues can quickly impact performance.
Positive Factors
Strong Year-To-Date Performance
The ETF has delivered strong gains so far this year, indicating solid momentum in the semiconductor sector.
Leading Semiconductor Holdings
Top positions like Micron, AMD, Intel, and Marvell have shown strong performance, helping drive the fund’s overall returns.
Large Asset Base
The fund manages a very large pool of assets, which suggests broad investor confidence and good liquidity for trading.
Negative Factors
Recent Short-Term Pullback
The ETF has experienced a weak one-month performance, showing that it can be sensitive to short-term market swings.
High Industry Concentration
With nearly all assets in semiconductor and technology-related companies, the fund is heavily exposed to downturns in a single industry.
Limited Geographic Diversification
The ETF is almost entirely invested in U.S. companies, offering little protection if the U.S. market or economy faces challenges.

SOXX vs. SPDR S&P 500 ETF (SPY)

SOXX Summary

SOXX is the iShares Semiconductor ETF, which follows the NYSE Semiconductor Index and focuses on companies that design and make computer chips. These chips power smartphones, data centers, AI, 5G, and many other modern technologies. The fund holds big names like Nvidia and Intel, giving you a simple way to invest in the growth of the semiconductor industry without picking individual stocks. Investors might consider SOXX for long-term growth and diversification within technology. However, it is heavily concentrated in chip and tech companies, so its price can swing sharply with changes in the tech sector and overall market.
How much will it cost me?The iShares Semiconductor ETF (SOXX) has an expense ratio of 0.34%, meaning you’ll pay $3.40 per year for every $1,000 invested. This cost is slightly higher than average because it is a specialized ETF focused on the semiconductor industry, which requires more active management compared to broad market index funds.
What would affect this ETF?The iShares Semiconductor ETF (SOXX) could benefit from growing demand for semiconductors driven by trends like artificial intelligence, 5G, and the Internet of Things, which are fueling innovation in its top holdings like Nvidia and AMD. However, it may face challenges from potential regulatory changes, geopolitical tensions affecting supply chains, or economic slowdowns that could reduce technology spending. Its heavy focus on U.S.-based companies and the technology sector makes it sensitive to these factors.

SOXX Top 10 Holdings

SOXX is essentially a pure play on the chip world, with heavy bets on U.S. semiconductor leaders. AMD and Micron have been rising and act as key engines for the fund, helped by strong momentum in AI and data center demand. Nvidia and Broadcom, while still powerhouses, have shown more mixed, stop‑and‑go performance lately, keeping a lid on gains. On the weaker side, equipment names like Applied Materials and Lam Research have been lagging in the short term. Overall, it’s a concentrated, tech-heavy, mostly U.S.-centric ride on the semiconductor cycle.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Nvidia8.75%$3.65B$4.77T5.99%
76
Outperform
Advanced Micro Devices8.26%$3.44B$741.30B139.30%
73
Outperform
Broadcom8.00%$3.33B$1.81T22.37%
76
Outperform
Micron7.93%$3.30B$926.70B544.06%
79
Outperform
Intel5.11%$2.13B$435.30B322.83%
64
Neutral
Applied Materials4.97%$2.07B$378.29B130.45%
77
Outperform
KLA4.66%$1.94B$249.24B83.99%
77
Outperform
TSMC4.57%$1.91B$1.82T54.24%
81
Outperform
Texas Instruments4.25%$1.77B$253.03B43.15%
78
Outperform
Analog Devices4.15%$1.73B$178.19B52.90%
78
Outperform

SOXX Technical Analysis

Technical Analysis Sentiment
Negative
Last Price
Price Trends
50DMA
567.23
Negative
100DMA
484.03
Negative
200DMA
400.24
Positive
Market Momentum
MACD
RSI
STOCH
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For SOXX, the sentiment is Negative. The current price of undefined is equal to the 20-day moving average (MA) of 546.83, equal to the 50-day MA of 567.23, and equal to the 200-day MA of 400.24, indicating a neutral trend. The MACD of ― indicates undefined momentum. The RSI at ― is undefined, neither overbought nor oversold. The STOCH value of ― is undefined, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SOXX.

SOXX Peer Comparison

Comparison Results
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$43.62B0.34%
74
Outperform
$137.78B0.09%
74
Outperform
$114.19B0.08%
75
Outperform
$57.91B0.08%
72
Outperform
$23.00B0.38%
76
Outperform
$19.45B0.08%
74
Outperform
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SOXX
iShares Semiconductor ETF
465.00
218.20
88.41%
VGT
Vanguard Information Technology ETF
XLK
Technology Select Sector SPDR Fund
XLF
Financial Select Sector SPDR Fund
IYW
iShares U.S. Technology ETF
FTEC
Fidelity MSCI Information Technology Index ETF
Glossary
BuyAn ETF rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF is likely to deliver higher returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldAn ETF rated as a "Hold" s expected to perform in line with the overall market or a specific benchmark. This rating indicates that the ETF is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellAn ETF rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF may deliver lower returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
DisclaimerThis AI Analyst ETF Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in ETFs carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: ―
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