SMH - SOXX: AI-Fueled Capex Upgrade Cycle Tailwinds Still Intact

2024-06-14 04:25:30 ET

Summary

• Semiconductor stocks are experiencing strong tailwinds due to increasing demand for AI applications.
• iShares Semiconductor ETF is a good way to gain exposure to the semiconductor space.
• SOXX outperforms its peers and has the potential for further upside due to the composition of stocks and growth in capex spending.
• The Fund's positioning with AMD, Broadcom, and Qualcomm puts it in a position to benefit from the secular tailwinds.

Investment Thesis

Semiconductor stocks are enjoying one of the strongest tailwinds in the lifetime of their business at the moment. Technology firms and AI startups are in a race to build powerful machine learning models as AI applications take center stage not only in the lives of end users but also in the business models of any business....

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