SOXX: Thesis Intact, Rally Still A Go, Maintain Buy

FinHeim Research94 FollowersFollow5ShareSavePlay(10min)CommentsSummaryiShares Semiconductor ETF remains a BUY, supported by robust AI-driven demand, hyperscaler capex outperformance, and strong memory pricing.SOXX has delivered a +32% YTD return and over 133% trailing 12-month price return, with AUM rising to $26.8 billion.Hyperscaler capex is projected to exceed $750 billion in 2026, with 75% allocated to AI infrastructure, reinforcing a durable multi-year demand cycle.Risks include semiconductor supply chain sensitivities, potential tariff escalations, and the need for AI monetization by major tech firms by the end of 2026.SweetBunFactory/iStock via Getty Images At the beginning of the year, I wrote my first article on iShares Semiconductor ETF (SOXX)- SOXX: Trillion Dollar Market, Rally Not Over Yet—and rated it a BUY. The thesis rested on three factors: the insatiableThis article was written byFinHeim Research94 FollowersFollowWith a background in asset management, FinHeim Research is specialized in investment analysis and portfolio management, maintaining a global perspective on financial markets. Expertise in portfolio construction and optimization. Long term investor. Passionate about finding value in traditional companies and tech gems alike. Thematic investing research and thematic ETFs. Macroeconomics enthusiast. Main goal of writing is sharing hidden value and insightful facts and opinions, providing objective analysis to help investors in selecting the best option for their goals and strategies.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.