Semiconductor ETF, Explosive 88% Surge This Year... "No Problem Even with NVIDIA (NVDA) Plunge"

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Semiconductor exchange-traded funds (ETFs) jumped 12.6% in June alone, recording an 88% increase in 2026. An investment structure that broadly includes Micron, AMD, Intel, and semiconductor equipment stocks, rather than relying on a single stock like Nvidia, evenly absorbed the benefits of the AI-driven semiconductor boom.

According to Nasdaq, a U.S. economic media outlet, on July 6 (local time), the iShares Semiconductor ETF (SOXX) rose 12.6% in June. This ETF tracks the NYSE Semiconductor Index and diversifies investments across 30 major semiconductor companies listed on the U.S. stock market. The weight of the top 5 stocks is limited to a maximum of 8% each during quarterly rebalancing, and other stocks are limited to a maximum of 4%.

The diversified structure reduced the concentration on Nvidia (NVIDIA, NVDA) and embraced the gains of other strong semiconductor stocks. As of July 2, Micron Technology (MU) and Advanced Micro Devices (AMD) each slightly exceeded 8% of the ETF's weight, while Nvidia accounted for 7.5% and Intel (INTC) for approximately 6.2%. In June, the strength of Applied Materials (AMAT), KLA (KLAC), Intel, and Micron offset the declines of Nvidia and Broadcom (AVGO).

The first driving force in the semiconductor market in June was the demand for AI semiconductors and investment in production facilities. As investment in equipment necessary for expanding AI semiconductor production increased, semiconductor equipment stocks rose. U.S. President Donald Trump's claim that Intel and Apple (AAPL) had agreed to develop and produce semiconductors in the U.S. also boosted Intel's stock price, but Intel and Apple did not confirm the agreement.

Micron's Q3 earnings reconfirmed the shortage of memory semiconductors. Micron executives stated, “Overall, both DRAM and NAND total supply are significantly short of total demand. DRAM is extremely short, and HBM supply is also very limited. All sectors are facing the same difficulties.” Micron decided to increase its capital expenditure from $15.9 billion in fiscal year 2025 to $27 billion in fiscal year 2026, and executives announced a significant increase in investment for the next year as well. According to S&P Global Market Intelligence, Wall Street analysts estimated the investment size to be $44 billion.

In the June semiconductor market, three trends simultaneously gained momentum: AI demand, increased investment in production facilities, and memory supply shortages. The iShares Semiconductor ETF, through its diversified investment structure across the entire semiconductor industry rather than a single large-cap stock, reflected the upward trends of equipment stocks, memory companies, and semiconductor manufacturers.

[Article Key Summary]

-The iShares Semiconductor ETF rose 12.6% in June. Its 2026 growth rate was 88%.

-The strength of Micron, AMD, Intel, and semiconductor equipment stocks offset the declines of Nvidia and Broadcom.

-Increased AI semiconductor demand and production facility investment, along with DRAM, NAND, and HBM supply shortages, drove the semiconductor industry's strength.

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