An index tracking semiconductor stocks is nearing a record-breaking run, as investors continue to bet on strong growth driven by artificial intelligence. The Philadelphia Semiconductor Index (SOXX) rose as much as 1.9% on Wednesday and is on pace for its 16th straight day of gains, which would be the longest streak on record going back to 1994. Over that stretch, the index has surged by about 37%, putting April on track to be its best month since February 2000.
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Trade SPY with leverageThe main driver behind this surge is the ongoing boom in AI spending. Ever since the launch of ChatGPT helped kick off the modern AI wave, companies have been investing heavily in infrastructure, which has directly boosted demand for semiconductors. As a result, analysts expect the sector’s revenue to grow by about 57% in 2026, which is far higher than the rest of the tech sector and well above the S&P 500’s (SPY) expected growth. Because of this strong outlook, many investors still see the sector as attractive.
Unsurprisingly, several major chip companies have been leading the charge. Nvidia (NVDA) has become the standout after rising more than 1,200% over the past five years and reaching a market value of nearly $5 trillion. At the same time, Broadcom (AVGO), Micron Technology (MU), and Advanced Micro Devices (AMD) have also posted massive gains. While Intel (INTC) has lagged over the long term, it has recently picked up momentum as investors have grown more confident in its turnaround efforts. Overall, the semiconductor sector has more than tripled over the past five years, far outpacing the broader market.
Is SOXX ETF a Good Buy?
Turning to Wall Street, analysts have a Strong Buy consensus rating on SOXX ETF based on 25 Buys, four Holds, and one Sell assigned in the past three months, as indicated by the graphic below. Furthermore, the average SOXX price target of $426.93 per share implies that shares are trading near fair value.
