iShares Semiconductor ETF remains a strong buy amid robust AI demand and hyperscaler capex growth.

The iShares Semiconductor ETF (SOXX) continues to be rated a BUY due to strong demand driven by AI technology, outperforming hyperscaler capital expenditures, and solid memory chip pricing. SOXX has delivered a 32% return year-to-date and over 133% in the past 12 months, with assets under management reaching $26.8 billion. Hyperscaler capex is expected to exceed $750 billion by 2026, with 75% dedicated to AI infrastructure, supporting a long-term demand cycle. Key risks include semiconductor supply chain issues, potential tariff increases, and the need for major tech firms to monetize AI by the end of 2026.