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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 positions—like Nvidia, Broadcom, Micron, and Applied Materials—show strong financial performance, positive earnings commentary, and attractive growth prospects tied to AI, data centers, and advanced chip manufacturing. These strengths are partly offset by holdings such as Intel and Teradyne, where valuation concerns and profitability or operational challenges weigh on their outlook. The main risk for SOXX is its heavy concentration in the semiconductor sector, which makes the fund sensitive to industry cycles, high valuations, and trade or export-related policy changes.
Positive Factors
Strong Recent Performance
The ETF has shown strong gains over the year and in recent months, indicating solid momentum in the semiconductor sector.
Leading Semiconductor Holdings
Many of the top holdings, including major chip designers and equipment makers, have delivered strong year-to-date performance, helping drive the fund’s returns.
Large Asset Base
The fund manages a very large pool of assets, which can support better liquidity and tighter trading spreads for investors.
Negative Factors
High Sector Concentration
Almost all of the ETF’s exposure is in the technology sector, so it is heavily tied to the ups and downs of semiconductor stocks.
Limited Geographic Diversification
With nearly all holdings based in the U.S., the fund offers little geographic diversification and is closely linked to the U.S. market.
Meaningful Expense Ratio
The fund’s expense ratio is not among the lowest for ETFs, which slightly reduces the net return investors keep over time.

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

SOXX Summary

The iShares Semiconductor ETF (SOXX) is a fund that follows the NYSE Semiconductor Index, focusing on U.S. chip and semiconductor companies that power things like AI, 5G, and everyday electronics. It holds big names such as Nvidia and Intel, giving you a simple way to invest in many leading chip makers at once instead of picking individual stocks. Someone might invest in SOXX for growth potential as demand for chips rises across the global economy. However, it is heavily dependent on the semiconductor and tech sector, so its price can swing up and down a lot.
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 riding a powerful wave in semiconductors, with AI-focused heavyweights like Broadcom, Nvidia, and AMD doing much of the lifting as demand for chips in data centers and advanced computing keeps rising. Marvell and Micron add extra fuel, both showing strong, momentum-driven gains tied to AI and high-bandwidth memory. On the steadier side, equipment makers like Applied Materials and KLA help smooth the ride, while Intel, despite its recent rebound, still feels a bit like a turnaround story in progress. The fund is highly concentrated in U.S.-listed chip names, making it a pure play on the semiconductor boom.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Broadcom8.07%$2.39B$2.00T117.28%
76
Outperform
Micron7.84%$2.32B$560.17B567.72%
79
Outperform
Advanced Micro Devices7.68%$2.28B$567.05B247.16%
73
Outperform
Nvidia7.53%$2.23B$5.06T99.22%
76
Outperform
Marvell5.97%$1.77B$143.68B169.52%
76
Outperform
Intel5.74%$1.70B$414.43B314.38%
64
Neutral
Applied Materials5.00%$1.48B$330.97B168.49%
77
Outperform
Monolithic Power4.28%$1.27B$80.16B171.28%
75
Outperform
Texas Instruments3.91%$1.16B$252.33B65.91%
78
Outperform
Teradyne3.87%$1.15B$65.45B423.23%
71
Outperform

SOXX Technical Analysis

Technical Analysis Sentiment
Positive
Last Price
Price Trends
50DMA
365.53
Positive
100DMA
346.20
Positive
200DMA
307.08
Positive
Market Momentum
MACD
27.37
Negative
RSI
72.50
Negative
STOCH
74.80
Neutral
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For SOXX, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 402.02, equal to the 50-day MA of 365.53, and equal to the 200-day MA of 307.08, indicating a bullish trend. The MACD of 27.37 indicates Negative momentum. The RSI at 72.50 is Negative, neither overbought nor oversold. The STOCH value of 74.80 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SOXX.

SOXX Peer Comparison

Comparison Results
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$28.43B0.34%
74
Outperform
$122.70B0.09%
74
Outperform
$101.44B0.08%
75
Outperform
$51.34B0.08%
72
Outperform
$20.78B0.38%
76
Outperform
$17.61B0.08%
74
Outperform
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SOXX
iShares Semiconductor ETF
449.99
262.62
140.16%
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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