Seeking Alpha • Jul 23

An Agentic AI Tide Lifting All Boats

Summary Dell, Intel, and AMD are rallying as agentic AI shifts compute demand from GPUs back to CPUs. This shift impacts each company differently: one benefits most, another sees margin relief, and the third is rewarded despite unchanged execution. These names have different benefits, and it turns out it's commensurate with the upside remaining for each of them. Read the full article on Seeking Alpha

Seeking Alpha • Feb 11

SOXX: What DeepSeek And Tariffs On China Mean For The Semiconductor Industry's Future

Summary The semiconductor industry faces uncertainty due to U.S.-China trade tensions and the introduction of China's AI competitor, DeepSeek, impacting SOXX's short-term performance. SOXX's momentum has dropped significantly, reflecting recent economic events, but its long-term performance remains strong, warranting a hold rating for now. DeepSeek's emergence challenges OpenAI, potentially spurring innovation in AI, but raises concerns about Chinese censorship and national security. Geopolitical factors, such as U.S.-China relations and Taiwan tensions, will be crucial for SOXX's future, making it a risky investment at present. Read the full article on Seeking Alpha

Seeking Alpha • Feb 01

SOXX: The Impact Of New Chinese AI On Semiconductor ETF Valuation

Summary The author recommends holding the SOXX ETF, which aims to provide exposure to the semiconductor companies segment. Chinese startup DeepSeek has launched its R1 model, which has outperformed competitors like ChatGPT, raising questions about America’s leadership in AI and reducing the immediate appeal of semiconductor ETFs. Even with declines in semiconductor stocks, valuation multiples remain above the historical average, and semiconductor ETFs, such as SOXX, are considered risky in this scenario. Read the full article on Seeking Alpha

Seeking Alpha • Dec 03

SOXX: Not Time To Cash In

Summary The semiconductor sector is poised for a cyclical recovery, boosted by AI development with EPS growth forecasted at 32% for 2025. Despite a 12-month gain of 30%, the sector remains attractively valued with a 25% upside potential for 2025, supported by consensus price targets. The sector's high EPS growth does not come at an expensive price, with a 23x P/E target under a 1.0x PEG ratio, indicating room for expansion. Read the full article on Seeking Alpha

Seeking Alpha • Nov 22

SOXX: 2024 Has Formed A Head And Shoulders Pattern (Technical Analysis)

Summary SOXX has had an underwhelming 2024. It is closely correlated to MSFT which shows how much it relies on the hyperscalers. A large head and shoulders top is forming and the uptrend channel has broken. The technicals reflect a potential bearish shift. Read the full article on Seeking Alpha

Seeking Alpha • Oct 16

SOXX: OpenAI's O1 Means Winners And Losers In Semis

Summary The iShares Semiconductor ETF suffers from persistent tracking errors, undermining its performance and diversification benefits amidst rapid tech advancements and market volatility. Nvidia's Blackwell chip delays and rising competition from AMD, coupled with the launch of OpenAI's o1 model, strain SOXX's market alignment as the market reorders its AI winners and losers. Key beneficiaries of AI trends like Applied Materials and ASML have limited representation in SOXX, exacerbating rebalancing issues and tracking discrepancies. Despite AI sector growth, SOXX's structural weaknesses and rebalancing requirements make it a sell; better opportunities exist in alternative, more aligned funds. Read the full article on Seeking Alpha

Seeking Alpha • Sep 02

SOXX: Semiconductor Play With Decent Diversification

Summary The iShares Semiconductor ETF offers broad exposure to the semiconductor industry, focusing on top companies like Nvidia and Broadcom, despite high concentration risks. SOXX has a P/E of 33x and a beta of 1.59, indicating significant risk, especially if semiconductor demand from AI slows down. Compared to VanEck Semiconductor ETF, SOXX has underperformed but offers a more balanced mix of holdings, making it a potentially better choice. While the semiconductor sector is volatile, SOXX's exposure to long-term growth trends makes it a compelling option for future-focused investors. Read the full article on Seeking Alpha

Seeking Alpha • Aug 26

SOXX: Proportional Semiconductor Exposure Should Result In Good Risk-Adjusted Returns

Summary SOXX has historically lagged SMH in performance but has less risk from concentration and geopolitical exposure. As SOXX's weighting is more appropriate, investors are better isolated against potential risks materializing. With a fair representation of the sector, I rate SOXX a buy on strong long-term industry tailwinds. Read the full article on Seeking Alpha

Seeking Alpha • Jul 24

Semiconductor Supply Chain Q3 2024 Outlook: Multispeed Recovery

Summary Heading into the second half of 2024, most segments are in recovery, but at markedly different rates between AI applications, consumer devices and industrial products including autos. Even with funding and progress, mainland Chinese chipmakers face challenges like poor production yields, while the US, Japan and the EU consider further restrictions. The consensus of financial analysts' forecasts shows revenues of the top 10 chip producers rose by 44% year over year in the first quarter of 2024. Read the full article on Seeking Alpha

Seeking Alpha • Jul 18

SOXX: Inefficient Fund With Tracking Error

Summary The iShares Semiconductor ETF tracks semiconductor sector performance with major holdings like Broadcom, Nvidia, and AMD. SOXX has underperformed its benchmark, has a higher expense ratio, and faces tracking error issues due to high volatility in the semiconductor sector. Investors may find better opportunities in other ETFs with lower costs and more efficient tracking for long-term growth and sector exposure. With this, I am a sell on the ETF. Read the full article on Seeking Alpha

Seeking Alpha • Jun 14

SOXX: See 'Red' On Semiconductor Stocks, High Risk/High Reward

Summary The semiconductor industry has seen significant price appreciation due to multiple expansions and investor speculation, particularly in stocks like Nvidia and Broadcom. SOXX ETF is currently rated "red" in terms of reward potential versus potential risk, indicating high upside potential but also a high risk of major loss. Macro risks, such as the US Presidential election and Federal Reserve rate policy, could create a selling wave in the broader equity market, impacting the success of the semiconductor industry. Read the full article on Seeking Alpha

Seeking Alpha • May 02

SOXX: Wonderful Market Sector Now Trading At An Excessive Price

Summary The semiconductor industry has strong differentiation, financial metrics, and competitive advantages. Several popular semiconductor ETFs have outperformed the S&P 500 over the past decade by a wide margin. SOXX ETF is trading significantly above trend, indicating potential investor over excitement over AI chip demand, and presenting a significant risk to investors. Read the full article on Seeking Alpha

Seeking Alpha • Mar 25

SOXX: Gain Broader AI Exposure, Amid Chip Recovery

Summary iShares Semiconductor ETF gained 33% since July 2023, driven mostly by the AI story and strong demand for Nvidia's chips. Other companies like Micron, AMD, and Broadcom are also expected to benefit from the proliferation of AI in the industry. This proliferation factor is the reason that this time around, it is SOXX, which appears better positioned than SMH, which is more concentrated in Nvidia's shares. Also, the chip market is expected to recover in 2024, but caution is advised due to potential volatility related to interest rates not being cut in June. There is also the possibility of geopolitical risks with China escalating because of the forthcoming elections. Read the full article on Seeking Alpha

Seeking Alpha • Jan 18

SOXX: Technical Analysis And Outlook For Semiconductors

Summary Chip stocks have been performing well in the market for the past decade, attracting investors. I discuss several technical indicators that I am watching to evaluate taking a position in iShares Semiconductor ETF. SOXX presents favorable momentum and oscillating indicators but may possess too much volatility. I am taking a position in the Fund based on these bullish indicators but urge caution from investors who may not be able to stomach the volatility. I highlight some threats to the technical thesis that include a divergence from trends, reversal of momentum, and a high RSI showing buyers near exhaustion. Read the full article on Seeking Alpha

Seeking Alpha • Oct 20

SOXX: The Semiconductor Glut Is Back, And Growing Quickly

Summary The semiconductor market emerges from a shortage as output improves while global demand declines dramatically on negative economic trends. Most large semiconductor stocks in the iShares ETF SOXX have seen immense inventory growth and moderating sales over the past year. Long-term semiconductor demand may not continue to rise as the industry reaches maturity. Outside of specific market segments, most people and companies do not need faster devices, particularly as electricity costs and requirements rise. I believe SOXX may decline by an additional ~20-35% as it loses its growth premium and its holdings face moderate EPS declines. Last year, I published a detailed bearish outlook for the semiconductor sector, regarding the ETF (SOXX), in "SOXX: The Global Semiconductor Shortage Is Not A Buying Opportunity." While the ETF rose initially after that article was published, it is now down by around 28%, following a staggering 43% decline this year. In 2021, few analysts had a sharply negative outlook regarding the semiconductor sector. Chief reasons for my view included overestimating the 5G or IoT growth potential, and the negative impact higher chip prices would have on consumer demand. The sector also faced overvaluation and significant potential for an economic growth reversal. In 2022, much of that thesis has come to fruition. The economic growth outlook has declined considerably, with semiconductor sales turning over following a sharp rise in production. While global production is still weak, declines in demand have led to immense growth in most chipmakers' inventory levels, signaling an end to the semiconductor shortage. Those most highly valued semiconductor stocks, such as Nvidia (NVDA) and AMD (AMD), have undergone massive revaluation, falling around 60% this year, as growth expectations are re-assessed. The semiconductor stocks in SOXX have changed dramatically since last year. The ETF now posts a much lower weighted-average "P/E" valuation of 15X. Most investors' growth expectations have moderated as the reality of economic strain hampers chip demand. Additionally, US regulations such as the recent CHIPS ACT seeks to improve US chip manufacturing potential through industry subsidies. SOXX has lost nearly half its peak value and is trading at almost the same price it was two years ago. With this in mind, many investors are likely looking to purchase SOXX or its constituents as a "discount opportunity." Of course, it is often futile in markets to try to catch falling knives. The Economic Situation Facing Semiconductors The semiconductor industry has had a turbulent path since 2018. At that time, semiconductor sales and production boomed as prices reached record-low levels, arguably creating a market glut. The glut quickly vanished in 2020 as global lockdowns forced extreme declines in the worldwide production of chips and, more importantly, the output of chipmaking equipment. While many foundries restored production from late 2020 to 2021, the lack of chipmaking equipment slowed these efforts, creating a persistent decline in global output. Semiconductor prices have declined dramatically over past decades as innovation and capacity growth have led to lower production costs. This trend arguably broke in 2020 as the sharp decline in output forced sales lower while demand remained high, leading to a material rise in semiconductor prices. See below: Data by YCharts Since 2021, higher semiconductor prices have reversed gains in US manufacturer capacity utilization and, more recently, a decline in global sales. While higher prices have likely hampered sales, waning total economic business activity is likely to be the primary culprit. The US manufacturing PMI, a leading indicator of GDP growth, has fallen sharply this year. Semiconductor capacity utilization is historically correlated to the index; both have fallen together this year. See below: Data by YCharts The manufacturing PMI is declining for many reasons, including weak consumer sentiment, an inverted yield curve, and falling real wages. As consumer prices have risen sharply in the US and worldwide, many people and businesses are forced to reduce spending on non-necessary items. In most cases, semiconductors are not an essential good for most people as one can often delay the purchase of a new phone, computer, or vehicle until economic conditions improve. Indeed, we must consider the possibility that the semiconductor industry is fundamentally shifting. For decades, it has benefited from "Moore's law," which suggested semiconductors would become exponentially more advanced and cheaper over time. However, in recent years, leading innovators such as Intel (INTC) and Nvidia have pushed the atomic boundary of potential semiconductor density, meaning cooling needs are becoming far more extreme for any continued density growth. Moreover, computers, smartphones, and related technology are becoming ubiquitous worldwide, hampering their growth potential. In my view, the industry follows the same growth pattern as steel in the 1900s - rapid growth and adoption, followed by perfection, maturity, and nearly stagnant demand. Fundamentally, the technology cannot be improved much more without exacerbating energy needs, and it seems most people and businesses do not need even faster processors. Combined with the rise in prices and the decline in general economic growth (a "recession" under traditional measures), the immediate and long-term outlook for the industry appears lackluster. This is not to say that demand for chips will decline substantially, but that investors should not endanger growth given shifting economic patterns and growing constraints within semiconductor production and innovation. A Closer Look At SOXX's Holdings The "P/E" valuations of most of the firms within SOXX have declined since I covered the fund last. That said, SOXX is still up by around 85% over the past five years, and many of its holdings may see EPS decline over the coming year. This negative trend is relatively straightforward by looking at the sales growth levels of the top ten firms in the ETF compared with the ISM PMI index and semiconductor manufacturer capacity utilization. See below: Data by YCharts The sales growth rate of these ten firms is tightly correlated to the ISM manufacturing PMI and semiconductor manufacturing capacity utilization. The sales growth rate of these ten firms is 25% YoY, but I expect it will decline toward zero over the coming quarters, as implied by the negative trends in the economic indicators. Few signs indicate a bottom in the GDP's decline as persistently high inflation combined with rising interest rates fuels more significant pressure on economic demand. With this in mind, I believe we will continue to see deterioration in macroeconomic demand for semiconductors as households and companies avoid or delay large purchases. At the same time, these companies have seen significant, and often extreme, growth in inventory levels. See below: Data by YCharts Nvidia's inventory growth is the highest over recent years and signals risk in the company's sales prices. The company has stated that its excess inventory of certain products has dragged down its balance sheet this year. While Nvidia's situation is the most extreme, other large semiconductor companies appear to be in a similar condition. If production levels generally remain high while demand continues to wane, further inventory buildup will likely push the market into a deep glut, causing prices to reverse sharply.

Seeking Alpha • Aug 31

SOXX: Chip Equipment Makers To Benefit More From The CHIPS Act

Summary The CHIPS Act aims to make the American semiconductor (chip) industry less dependent on foreign supplies and more competitive. While everyone is focusing on semiconductor manufacturers, it is the equipment makers who make it feasible to build chips in the first place who should benefit more. In this respect, one ETF which has more exposure to semiconductor equipment makers than peers is SOXX. Economic uncertainties persist while the WSTS points to growth in 2022 and there are also strategic imperatives. In these conditions, it is better to wait for the ETF to boost its holdings pertaining to equipment makers, or alternatively, invest in individual stocks as per the table provided. The purpose of the $52 billion Chips and Science Act is to support the American semiconductor industry, as well as make the country less dependent and more competitive. Its promulgation was carried out with great fanfare by the President together with the industry heads with the signing ceremony attended by the CEOs of Intel (NASDAQ:INTC) and Micron (NASDAQ:MU), and others. Many see these companies as the main beneficiaries of chip production on American soil which is likely to shorten the supply chain which stretches to East Asia. However, I see these companies benefiting, but more over the longer term, and in the meantime, it is the semiconductor equipment makers which should gain the most as I will show in this thesis. One way to gain exposure to equipment plays is to invest in the iShares Semiconductor ETF (SOXX) which has suffered from a 21% drop in the last year as shown in the chart below. SOXX data by YCharts I start by providing some insights on the CHIPS Act which has now been signed into law, stressing how it will translate into more capital expenses by semiconductor (semis) manufacturers. The CHIPS Act The Act should stimulate investment in the semis sector with one example being Micron, which has announced a $40 billion venture to manufacture memory chips, thereby paving the way to increasing U.S. market share from 2% to 10%. To this end, one key part of the legislation is investment tax credits, which can equal 25% for a qualified advanced facility a chip manufacturer invests in. As for Intel, with its $20 billion project foundry project for manufacturing microprocessors in Ohio, it expects to receive funding in 2023 as it follows the application process for CHIPS money. On the other hand, things are less clear for fabless plays such as Qualcomm (NASDAQ:QCOM), Advanced Micro Devices (NASDAQ:AMD), and Nvidia (NASDAQ:NVDA), who after designing their own chips, rely on contract foundry operators like Taiwan Semiconductor (TSM) for the production part. Still, they could benefit from the R&D component of the CHIPS act whereby $13 billion out of the $52 billion has been earmarked for semiconductor research facilities. Hence, $39 billion (52-13) should go to boosting chip manufacturing in the U.S. Motivated by these subsidies, other manufacturers like GLOBALFOUNDRIES (NASDAQ:GFS) are also expanding capacity. This is also the case with Samsung Electronics (SSNLF) which already produces chips in Texas and TSM which is building a foundry in Arizona. The chart below shows the quarterly Capex spending of some of the names I just mentioned as well as for Texas Instruments (NASDAQ:TXN) which produces analog chips. It is setting four plants worth $30 billion. Adding up the amounts just for Micron, Intel, and Texas Instruments, I obtain $90 billion, which signifies that the charts below will see uptrends. INTC Capital Expenditures (Quarterly) data by YCharts Looking deeper, these billions of dollars of Capex spend will go towards building up manufacturing sites, thereby consuming more steel and concrete. However, for the sites to be operational and produce chips, something more important is required and this is the equipment for manufacturing semiconductors. Semiconductor Equipment Makers Going into more detail, there are several private and publicly listed companies that produce chip-making equipment used for lithography, wafer deposition, process diagnostics, assembly, and test systems. One such company which is also held by SOXX is Applied Material (NASDAQ:AMAT) which makes equipment for ion implantation, rapid thermal processing, and many other purposes. Furthermore, the ETF clearly differentiates between equipment makers like Applied Materials and the wider semiconductor sector as is shown in the table below. It dedicates 20% of assets to semiconductor equipment and makes sense for those who do not want to fish for individual stocks, and, instead look to benefit from industry strength. For investors, it is important to note that at this stage, it is still too early to deduce which of the equipment makers will benefit the most from the Capex spending to be made for boosting the manufacturing of semis. This makes the ETF option as opposed to individual stocks more alluring. SOXX Semiconductor Equipment holdings (www.ishares.com) Breaking down the list of semiconductor equipment, names like KLA Corp (NASDAQ:KLAC) and Lam Research (NASDAQ:LRCX) start to appear, but one name which has been in the limelight for some time now is Netherlands' ASML NV (NASDAQ:ASML) which has been prevented from selling its gear to China's SMIC (Semiconductor Manufacturing International Corp) by the U.S. and Dutch authorities. The company's extreme ultraviolet (EUV) systems enable the production of leading-edge chips and denying China such capability is seen as key by the U.S. authorities in order to maintain competitive advantage as well as being in control of the supply chain for sophisticated electronics. Looking for alternatives, there is also Invesco PHLX Semiconductor ETF (SOXQ) which provides exposure to chip equipment makers, but at a slightly lesser extent than SOXX or at 19%. This is as per my calculation in the table below. SOXQ Equipment holdings (www.invesco.com) I had already covered this ETF back in May this year where I found it to be better than SOXX from the value perspective. Coming back to the theme of this thesis which is exposure to semiconductor equipment, whether it is 20% for SOXX or 19% for SOXQ, this still constitutes around one-fifth of both ETFs' assets, which is low. This is also the case with the VanEck Semiconductor ETF (SMH), which provides around 19% of exposure to equipment plays. Consequently, in the future, as more attention turns to the equipment, these ETFs could possibly include other names like Japan's Tokyo Electron (TOELY) in their holdings. Economic Uncertainties But Better Strategic Perspectives In the meantime, while the WSTS (World Semiconductor Trade Statistics) predicts strong demand globally with the market expected to grow by 13.9% in 2022, there are some uncertainties. First, inflation fears appear to be crystallizing mostly in Europe as well as on this side of the Atlantic as central bankers tighten monetary policy in order to bring inflation under control. Second, this is a sector where there is less visibility which may have prompted several customers to order more chips than they actually needed from manufacturers at the end of 2021 and beginning of 2022. This implies that inventory levels may be running high and raises the specter of lower demand, cascading into lower sales by chip companies. There are also rising geopolitical risks in East Asia where TSMC together with other local foundry operators accounts for nearly 60% of the chips consumed in the world today. In these circumstances, after the initial enthusiasm seen on August 9 when President Biden signed the CHIPS Act, the market has suffered with the tech sector taking a beating, especially after Fed Chairman Jerome Powell confirmed his hawkish outlook on interest rates on Friday 26. Thus, a look at the market performance shows that SOXX underperformed by -5.23%, but looking further, it can be noticed that some semiconductor equipment makers like Entegris (ENTG), KLAC, and Applied Materials have been less impacted. This shows that there is likely some optimism around the semis equipment space.

Seeking Alpha • Jul 28

SOXX: Buy Despite The Risks

Slowdown in economic activity and accelerating inflation are the main short-term risks. Long-term outlook for the industry remains positive. SOXX's top holdings are poised for the long-term growth. I believe that SOXX is quite undervalued and investors' pessimism is too excessive. Two months ago I published the article iShares Semiconductor ETF: The Chip Shortage Is Here To Stay. Since then, iShares Semiconductor ETF (SOXX) fell 7.7% due to overall market volatility, while YTD performance is -30%. I believe that investors' pessimism is, in fact, excessive and the massive potential of the industry overshadows short-term risks. Declining demand TrendForce recently published a study that says demand for chips is declining. At the same time, data shows that the prices of new semiconductors remain at a high level as there is still a huge demand for these models and prices are only reduced for chips of past generations. This is a consequence of the slowdown in economic activity in the US and around the world. So far, there are no unequivocal signals indicating a critical slowdown in the US economy. In the first quarter, the decline in Gross Domestic Product was 1.6%, but the forecasts for the second quarter, although adjusted downwards, remain in the positive zone. The main sign of a technical recession is the fall in GDP for two quarters in a row. Thus, the recession could start in late 2022 or likely not at all. However, the economy is still starting to slow down, which will definitely affect the volume of orders for semiconductors. bea.gov Second, high inflation puts lots of pressure on the cost of the chips themselves and massively increases CAPEX that the leaders of the industry, like TSMC (TSM) and Intel (INTC), have already been ramping up in an attempt to increase production. These companies have a high pricing power, which allows them to effectively pass the inflation to end consumers, however, it may lead to a market meltdown and a decrease in consumer activity. That is evidenced by the fact that Apple (AAPL), NVIDIA (NVDA), and AMD (AMD) have expressed a desire to partially reduce chip production at TSMC factories or redistribute shipments to a later date. These factors could be a signal for a temporary end to the chip crisis in 2023. Industry outlook In 2021, the semiconductors market grew 26% YoY and is expected to continue its growth. According to the World Semiconductor Trade Statistics, worldwide semiconductor revenues were up 18% YoY in May 2022 with the Americas leading the race as year-over-year sales were up 36.9% in this region. The WSTS expects the market to reach $646 billion (+16.3% YoY) in 2022. In March, the organization only saw a $613.5 billion opportunity (+10.4% YoY). semiconductors.org For 2023, the World Semiconductor Trade Statistics provides an estimate of 5.1% YoY growth. I believe that it is more than possible for the market to beat these expectations if the US will avoid the recession as analysts always give a conservative outlook for the following year. As for a longer-term perspective, I believe that the end of the semiconductor crisis is rather a positive sign for chip manufacturers. In the near future, pronounced pent-up demand is expected in sectors such as automotive, wireless, and computing and data storage. McKinsey expects about 70% of the growth of the industry to be driven by just three sectors. McKinsey High demand should have a positive impact on chip production volumes in the coming years, especially given the planned mass launch of new factories in the next five years. Valuation With market conditions driving capital outflows from growth stocks, the semiconductor industry has fallen more than the market and is now trading at a P/E of 19.5x, below the average three-year average P/E of 27x. simplywall.st I believe the market has been too tough for the industry, given that semiconductor companies are among the few that will continue to do well even in poor macroeconomic conditions, given the demand for the companies' products. Top 3 holdings SOXX's three largest holdings are NVIDIA, Broadcom (AVGO), and Intel. They account for 23.6% of all holdings and are the absolute leaders of the industry. NVIDIA, the largest SOXX holding (7.9%), remains the undisputed market leader in GPUs, AI processors, and related software. A commitment to innovation has made GPUs critical for the expansion of gaming and data center segments. I expect strong demand for the company's gaming GPUs and look forward to further strengthening its position in areas such as artificial intelligence, networking, computer graphics, and data centers. I think that the large share of NVIDIA stocks in SOXX's portfolio confirms the fund's long-term outlook. Broadcom's product portfolio targets markets that are currently experiencing explosive growth. Broadcom is a true juggernaut in areas such as the broadband and mobile markets. The company's growth will be driven by a transition to next-generation Ethernet switches, adoption of Wi-Fi 6, expansion of latest-generation fiber coverage, and global growth of 5G coverage. Broadcom is another giant long-term bet with a weight of 7.86%.

Seeking Alpha • May 25

SOXX: Massive Pessimism Baked In

The SOXX ETF has been ensnared in a bearish momentum since its last bull trap in March 2022. However, the writing was already on the wall since November 2021. We discuss the critical levels that SOXX investors must watch before adding exposure. We have yet to observe a bear trap reversal price action. We rate SOXX as a Hold for now. However, the semi-industry trailing median P/E has normalized markedly. Therefore, we are confident that the reversal could be near.

Seeking Alpha • May 17

iShares Semiconductor ETF: The Chip Shortage Is Here To Stay

iShares Semiconductor ETF provides an opportunity to invest in top semiconductor manufacturers. Global semiconductor market sales were $556 billion in 2021 - an increase of 26.2 percent from 2020 despite ongoing logistical problems. The soaring investment plans of companies also speak of a good conjuncture in the industry. The main risk for manufacturers in this situation will remain the COVID-19 pandemic, which limits the use of existing production capacity and creates logistical obstacles amid lockdowns in China. I believe iShares Semiconductor ETF is a buy.

Seeking Alpha • Mar 27

SOXX Vs. SPY: Recent Correction Brought Their Valuations In Line

The iShares Semiconductor ETF has historically been traded at a premium relative to the overall market represented by the SPDR S&P 500 Trust ETF. In terms of PE, SOXX currently trades at an almost 20% premium relative to SPY. However, PE only provides partial information and can be misleading. Dividends provide a backdoor for investors to approximate owners’ earnings, the true economic earnings. You will see that the recent price corrections have brought SOXX and SPY ETFs' valuation in line with each other as measured by their dividend yield spread.

Seeking Alpha • Feb 16

SOXX: The Best Way To Take Full Advantage Of A Tech Rebound When Risk-On Sentiment Returns

Semiconductors are the highest beta thematic plays in a tech risk-on environment. Semiconductor valuations are relatively safer from Fed tightening given strong fundamentals. The SOXX index’s top holdings are actually less volatile than SMH’s top holdings. Elevated aggregate demand and the chip shortage in the Semiconductors space will give SOXX natural tailwinds.

Seeking Alpha • Dec 03

You Should Add To iShares Semiconductor ETF On Every Dip

Semiconductors are in high demand right now. The current shortage will end in the short term. Investors should invest in the industry for the future prospects.

Seeking Alpha • Sep 02

SOXX: Prospects Remain Amid Supply Crunch

The iShares PHLX SOX Semiconductor Sector Index ETF has delivered upbeat year-to-date and one-year performances despite the supply crunch. A look at inventory levels and price of semiconductor-making equipment shows that sales levels are likely to continue incrementing. Still, after delivering a 23% performance just for this year, it becomes sensible to look at 2022 for more upside. Some risks for the semiconductor industry are likely to emerge due to the automakers having been severely impacted, and for this purpose SOXX is a better choice. The ETF is a buy and hold with a $509-510 share price estimate for next year.

Seeking Alpha • Jun 21

Get Your SOXX On: Not Too Late To Add A Core Semiconductor Holding

Most investors are well aware of the current global semiconductor shortage that has affected supply chains across multiple industries. Most investors are also well aware that the Biden administration and the U.S. Congress are pursuing policies to make the US semiconductor supply chain more secure. However, many investors are not aware of the excellent long-term catalyst that 5G is for the semiconductor market. It is a transformative technology, in my opinion. You have no doubt heard the expression "data is the new oil". I agree. Yet "data" is - to a great extent - dependent on semiconductors for its acquisition, transmission, and processing. Investors strongly consider the semiconductor sector as a core long-term technology holding for a well-diversified portfolio built for the 21st Century.

Snowflake Score
Valuation	1/6
Future Growth	0/6
Past Performance	3/6
Financial Health	4/6
Dividends	0/6

Historical stock prices
Current Share Price	US$527.01
52 Week High	US$655.95
52 Week Low	US$232.33
Beta	1.78
1 Month Change	-12.38%
3 Month Change	14.17%
1 Year Change	118.19%
3 Year Change	196.58%
5 Year Change	246.03%
Change since IPO	2,076.23%

	SOXX	US Capital Markets	US Market
7D	1.0%	-2.5%	-2.0%
1Y	118.2%	-0.3%	15.1%

SOXX volatility
SOXX Average Weekly Movement	9.0%
Capital Markets Industry Average Movement	3.8%
Market Average Movement	7.1%
10% most volatile stocks in US Market	16.1%
10% least volatile stocks in US Market	3.2%

SOXX fundamental statistics
Market cap	US$45.62b
Earnings (TTM)	US$8.04b
Revenue (TTM)	US$146.84m

SOXX income statement (TTM)
Revenue	US$146.84m
Cost of Revenue	US$0
Gross Profit	US$146.84m
Other Expenses	-US$7.89b
Earnings	US$8.04b

Earnings per share (EPS)	97.11
Gross Margin	100.00%
Net Profit Margin	5,472.87%
Debt/Equity Ratio	1.1%

Data	Last Updated (UTC time)
Company Analysis	2026/07/24 23:20
End of Day Share Price	2026/07/24 00:00
Earnings	2026/03/31
Annual Earnings	2026/03/31

Package	Data	Timeframe	Example US Source ^*
Company Financials	10 years	Income statement Cash flow statement Balance sheet	SEC Form 10-K SEC Form 10-Q
Analyst Consensus Estimates	+3 years	Forecast financials Analyst price targets	Analyst Research Reports Blue Matrix
Market Prices	30 years	Stock prices Dividends, Splits and Actions	ICE Market Data SEC Form S-1
Ownership	10 years	Top shareholders Insider trading	SEC Form 4 SEC Form 13D
Management	10 years	Leadership team Board of directors	SEC Form 10-K SEC Form DEF 14A
Key Developments	10 years	Company announcements	SEC Form 8-K

iShares Trust - iShares Semiconductor ETF (SOXX) Stock Overview

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SOXX – iShares Semiconductor ETFFull Analysis Report & EOY 2027 Fair Value Estimate

Top Community Narratives

SOXX – iShares Semiconductor ETFFull Analysis Report & EOY 2027 Fair Value Estimate

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Price History & Performance

Recent News & Updates

An Agentic AI Tide Lifting All Boats

SOXX – iShares Semiconductor ETFFull Analysis Report & EOY 2027 Fair Value Estimate

iShares Trust - iShares Semiconductor ETF announces Quarterly dividend, payable on March 20, 2026

iShares Trust - iShares Semiconductor ETF announces Quarterly dividend, payable on December 19, 2025

iShares Trust - iShares Semiconductor ETF announces Quarterly dividend, payable on September 19, 2025

iShares Trust - iShares Semiconductor ETF announces Quarterly dividend, payable on March 21, 2025

Recent updates

An Agentic AI Tide Lifting All Boats

SOXX – iShares Semiconductor ETFFull Analysis Report & EOY 2027 Fair Value Estimate

iShares Trust - iShares Semiconductor ETF announces Quarterly dividend, payable on March 20, 2026

iShares Trust - iShares Semiconductor ETF announces Quarterly dividend, payable on December 19, 2025

iShares Trust - iShares Semiconductor ETF announces Quarterly dividend, payable on September 19, 2025

iShares Trust - iShares Semiconductor ETF announces Quarterly dividend, payable on March 21, 2025

SOXX: What DeepSeek And Tariffs On China Mean For The Semiconductor Industry's Future

SOXX: The Impact Of New Chinese AI On Semiconductor ETF Valuation

SOXX: Not Time To Cash In

SOXX: 2024 Has Formed A Head And Shoulders Pattern (Technical Analysis)

SOXX: OpenAI's O1 Means Winners And Losers In Semis

SOXX: Semiconductor Play With Decent Diversification

SOXX: Proportional Semiconductor Exposure Should Result In Good Risk-Adjusted Returns

Semiconductor Supply Chain Q3 2024 Outlook: Multispeed Recovery

SOXX: Inefficient Fund With Tracking Error

SOXX: See 'Red' On Semiconductor Stocks, High Risk/High Reward

SOXX: Wonderful Market Sector Now Trading At An Excessive Price

SOXX: Gain Broader AI Exposure, Amid Chip Recovery

SOXX: Technical Analysis And Outlook For Semiconductors

New major risk - Revenue and earnings growth

SOXX: The Semiconductor Glut Is Back, And Growing Quickly

SOXX: Chip Equipment Makers To Benefit More From The CHIPS Act

SOXX: Buy Despite The Risks

SOXX: Massive Pessimism Baked In

iShares Semiconductor ETF: The Chip Shortage Is Here To Stay

SOXX Vs. SPY: Recent Correction Brought Their Valuations In Line

SOXX: The Best Way To Take Full Advantage Of A Tech Rebound When Risk-On Sentiment Returns

You Should Add To iShares Semiconductor ETF On Every Dip

SOXX: Prospects Remain Amid Supply Crunch

Get Your SOXX On: Not Too Late To Add A Core Semiconductor Holding

Shareholder Returns

Price Volatility

About the Company

iShares Trust - iShares Semiconductor ETF Fundamentals Summary

Earnings & Revenue

Dividends

Company Analysis and Financial Data Status

Data Sources

Analysis Model and Snowflake

Industry and Sector Metrics

Analyst Sources