iShares Semiconductor ETF soars 89% YTD on AI data center investments, with hyperscaler capex key to future gains.

The iShares Semiconductor ETF (SOXX) has surged 89% year to date, driven by heavy capital spending from hyperscalers like Meta, Microsoft, and Amazon on AI data centers. SOXX holds about 30 chip stocks, with top performers like Micron and Intel up over 200%, while NVIDIA lags behind. The fund's future depends on continued AI-related spending by hyperscalers through 2027 and the quarterly rebalance, which may increase NVIDIA exposure despite its recent underperformance. Investors should watch hyperscaler capex reports and NVIDIA's supply commitments for signs of the cycle's strength or weakening.