By Anthony Di Pizio
Publication Date: 2025-12-30 10:13:00
The semiconductor industry looks set for further gains thanks to the artificial intelligence boom.
Top artificial intelligence (AI) developers like OpenAI and Anthropic continue to launch new models, with each one being “smarter” and more capable than the last. However, every new model also soaks up more computing power than its predecessors, so it requires significantly more data center capacity.
Some of the biggest suppliers of AI infrastructure, chips, and components include Nvidia (NVDA 1.21%), Advanced Micro Devices (AMD +0.29%), and Micron Technology (MU +3.41%). Shares in those three companies have surged by an average of 119% in 2025 alone, crushing the S&P 500 index, which is up just 18%.
In other words, investors who had little or no exposure to the AI semiconductor space this year probably underperformed the broader market.
Fortunately, there’s a simple way to buy a slice of this hypergrowth industry without having to pick winners and losers. The iShares Semiconductor ETF (SOXX 0.23%) is an exchange-traded fund (ETF) that exclusively invests in companies like Nvidia, AMD, Micron, and many of their peers. Here’s how it could turn an investment of $250,000 into $1 million over the next 10 years.
Image source: Getty Images.
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