In the first quarter of 2026, hedge funds dramatically increased their investments in semiconductor stocks, pushing sector exposure to a record 19% of global hedge fund portfolios, more than doubling since the start of the year. Major investors like Susquehanna International Group, Goldman Sachs, and BNP Paribas significantly raised their holdings in the SOXX semiconductor ETF, reflecting strong confidence in the chip industry. This shift comes at the expense of software and services stocks, which have declined in hedge fund allocations. Despite some dissent, such as Morgan Stanley's exit from SOXX, the trend highlights growing institutional enthusiasm for semiconductors amid strong market performance.
In 2026, the iShares Semiconductor ETF (SOXX) has outperformed the VanEck Semiconductor ETF (SMH) by capturing a broader range of semiconductor stocks, especially equipment makers, resulting in an 86.78% gain versus SMH's 64.11%. SOXX's index favors ...
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