Latest news with #iSharesSemiconductorETF
Yahoo
3 days ago
- Business
- Yahoo
Broadcom Slips After Earnings Beat, Drags Down Tech ETFs
Shares of Broadcom Inc. (AVGO) fell on Friday, underperforming the broader semiconductor industry and stock market despite reporting stronger-than-expected earnings after the bell on Thursday. The stock dropped as much as 4.5% during the session, giving back some of its recent gains. While Broadcom beat revenue expectations for its fiscal second quarter, the results failed to dazzle investors who had bid up the stock to record highs in the lead-up to the report. The company reported $15 billion in revenue for the quarter, up 20% from a year ago and slightly above the $14.96 billion consensus estimate. It also guided for $15.8 billion in revenue for the current quarter, just a hair ahead of the $15.7 billion analysts were expecting. In other words, the results were solid, but not spectacular. And after a 78% rally off the April lows, expectations were sky-high. The stock closed at a record on Wednesday, so some profit-taking was to be expected. Broadcom has been a major beneficiary of the artificial intelligence boom. The company designs networking products that help connect AI chips inside data centers. It also works with major tech firms like Alphabet Inc. (GOOGL) and Meta Platforms Inc. (META) to design custom AI chips, giving them an alternative to Nvidia Corp.'s (NVDA) market-dominating GPUs. That exposure to AI has helped push Broadcom's market cap north of $1 trillion, making it one of the most influential stocks in major indexes and ETFs. Broadcom is currently the sixth-largest holding in the SPDR S&P 500 ETF Trust (SPY), with a weight of 2.4%. It's the fifth-largest holding in the Invesco QQQ Trust (QQQ), at 5%. It also has heavy representation in semiconductor-focused funds, making up 10.2% of the VanEck Semiconductor ETF (SMH) and 10.1% of the iShares Semiconductor ETF (SOXX). Investors looking for a more aggressive play on the stock have also been using the Defiance Daily Target 2X Long AVGO ETF (AVGX), which offers 2x leveraged exposure to Broadcom. That fund currently has $93 million in assets under management. Despite Friday's dip, Broadcom remains a key AI bellwether and a major driver of performance for many popular | © Copyright 2025 All rights reserved Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
02-05-2025
- Business
- Yahoo
Jensen Huang Predicts Annual Data Center Spending Will Hit $1 Trillion by 2028. Here's the Ultimate Semiconductor ETF to Buy Right Now.
Artificial intelligence (AI) could be the most valuable financial opportunity in the history of the semiconductor industry. Nvidia CEO Jensen Huang thinks data center spending will top $1 trillion per year by 2028, purely because of AI. The iShares Semiconductor ETF holds 30 of the highest-quality stocks that could benefit from the AI spending boom. Semiconductors are the beating heart of the artificial intelligence (AI) revolution. Graphics processing units (GPUs), AI accelerators, high-bandwidth memory, and networking equipment fill modern data centers, delivering the computing capacity developers need to create advanced AI software. Data center spending is growing each year, and Nvidia (NASDAQ: NVDA) CEO Jensen Huang predicts it will top $1 trillion annually by 2028 as tech giants and start-ups alike battle for AI supremacy. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue » The iShares Semiconductor ETF (NASDAQ: SOXX) holds 30 different stocks that could be massive winners if Huang is right. It's currently down 16% in 2025 amid the broader market sell off that was triggered by simmering global trade tensions, but here's why investors might want to look past the short-term noise and buy it now. The iShares Semiconductor ETF was established in 2001, so it has helped investors navigate numerous hardware booms driven by technologies like the internet, the smartphone, enterprise software, and cloud computing. Most suppliers of chips and components are now focusing on AI, because that's where the demand has shifted. The top five holdings in the iShares ETF feature some of the biggest hardware names in the AI space, and they represent 37.9% of the total value of the portfolio: Stock iShares ETF Portfolio Weighting 1. Broadcom 8.69% 2. Nvidia 8.01% 3. Texas Instruments 7.49% 4. Advanced Micro Devices 6.97% 5. Qualcomm 6.81% Data source: iShares. Portfolio weightings are accurate as of April 25, 2025, and are subject to change. Broadcom makes AI accelerators for three unnamed hyperscale customers which can be customized to suit their needs, so they are a great alternative to traditional GPUs from suppliers like Nvidia. Broadcom thinks it could capture up to $90 billion in annual revenue from those three customers alone by fiscal 2027. Beyond chips, the company sells data center switches and networking equipment to facilitate rapid processing speeds, which is also critical for AI developers. Despite growing competitive threats, Nvidia's data center GPUs are still the benchmark in AI hardware. The company recently unveiled its Blackwell Ultra GB300 GPU, which delivers a 50-fold performance bump in certain configurations compared to its old Hopper-based H100. The Blackwell Ultra architecture was designed for "reasoning" AI models, which require up to 100 times more computing power than traditional large language models, according to Jensen Huang. Advanced Micro Devices (AMD) is an emerging powerhouse in the data center space. It has its own lineup of AI GPUs, and its latest MI355X is built on a new architecture called CDNA (Compute DNA) 4, which was designed to rival Nvidia's original Blackwell architecture. However, those chips won't ship to customers in high volumes until midyear, so Nvidia still has a significant first-mover advantage. But it's not all about the data center, because AMD is also a top supplier of AI chips for personal computers, which could be a big growth market in the future. Outside of the above stocks, the iShares ETF holds a number of other prominent AI hardware names. They include Micron Technology, which supplies memory and storage chips, and Taiwan Semiconductor Manufacturing, which fabricates most of the GPUs designed by Nvidia and AMD. President Donald Trump imposed a broad 10% tariff on all imported goods from America's trading partners in early April, in addition to a series of higher "reciprocal tariffs" on specific countries. However, semiconductors are exempt from the reciprocal levies, mainly because leading the AI race is a matter of national security for the U.S. Nevertheless, trade tensions could drive an economic slowdown, which might affect demand for chips in the short term as data center operators reevaluate their budgets. But here's the good news: The iShares Semiconductor ETF has delivered a compound annual return of 10.4% since it was established in 2001, beating the average annual gain of 7.8% in the S&P 500 over the same period. Plus, the ETF has delivered an accelerated annual return of 20.9% over the last 10 years specifically, thanks to the broad adoption of technologies like enterprise software, cloud computing, and now AI. The point is the iShares ETF has weathered a number of economic shocks during its 24-year history -- including President Trump's last tariff saga in 2018 -- while still delivering strong returns. If data center spending does grow to an annual rate of $1 trillion by 2028 as Jensen Huang predicts, then those returns are likely to continue (if not accelerate further). As a result, this might be a great time to buy the iShares ETF, especially considering its year-to-date dip of 16%. Before you buy stock in iShares Trust - iShares Semiconductor ETF, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and iShares Trust - iShares Semiconductor ETF wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $607,048!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $668,193!* Now, it's worth noting Stock Advisor's total average return is 880% — a market-crushing outperformance compared to 161% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of April 28, 2025 Anthony Di Pizio has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices, Nvidia, Qualcomm, Taiwan Semiconductor Manufacturing, Texas Instruments, and iShares Trust-iShares Semiconductor ETF. The Motley Fool recommends Broadcom. The Motley Fool has a disclosure policy. Jensen Huang Predicts Annual Data Center Spending Will Hit $1 Trillion by 2028. Here's the Ultimate Semiconductor ETF to Buy Right Now. was originally published by The Motley Fool
Globe and Mail
01-05-2025
- Business
- Globe and Mail
Jensen Huang Predicts Annual Data Center Spending Will Hit $1 Trillion by 2028. Here's the Ultimate Semiconductor ETF to Buy Right Now.
Semiconductors are the beating heart of the artificial intelligence (AI) revolution. Graphics processing units (GPUs), AI accelerators, high-bandwidth memory, and networking equipment fill modern data centers, delivering the computing capacity developers need to create advanced AI software. Data center spending is growing each year, and Nvidia (NASDAQ: NVDA) CEO Jensen Huang predicts it will top $1 trillion annually by 2028 as tech giants and start-ups alike battle for AI supremacy. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More » The iShares Semiconductor ETF (NASDAQ: SOXX) holds 30 different stocks that could be massive winners if Huang is right. It's currently down 16% in 2025 amid the broader market sell off that was triggered by simmering global trade tensions, but here's why investors might want to look past the short-term noise and buy it now. Every top semiconductor stock packed into one ETF The iShares Semiconductor ETF was established in 2001, so it has helped investors navigate numerous hardware booms driven by technologies like the internet, the smartphone, enterprise software, and cloud computing. Most suppliers of chips and components are now focusing on AI, because that's where the demand has shifted. The top five holdings in the iShares ETF feature some of the biggest hardware names in the AI space, and they represent 37.9% of the total value of the portfolio: Stock iShares ETF Portfolio Weighting 1. Broadcom 8.69% 2. Nvidia 8.01% 3. Texas Instruments 7.49% 4. Advanced Micro Devices 6.97% 5. Qualcomm 6.81% Data source: iShares. Portfolio weightings are accurate as of April 25, 2025, and are subject to change. Broadcom makes AI accelerators for three unnamed hyperscale customers which can be customized to suit their needs, so they are a great alternative to traditional GPUs from suppliers like Nvidia. Broadcom thinks it could capture up to $90 billion in annual revenue from those three customers alone by fiscal 2027. Beyond chips, the company sells data center switches and networking equipment to facilitate rapid processing speeds, which is also critical for AI developers. Despite growing competitive threats, Nvidia's data center GPUs are still the benchmark in AI hardware. The company recently unveiled its Blackwell Ultra GB300 GPU, which delivers a 50-fold performance bump in certain configurations compared to its old Hopper-based H100. The Blackwell Ultra architecture was designed for "reasoning" AI models, which require up to 100 times more computing power than traditional large language models, according to Jensen Huang. Advanced Micro Devices (AMD) is an emerging powerhouse in the data center space. It has its own lineup of AI GPUs, and its latest MI355X is built on a new architecture called CDNA (Compute DNA) 4, which was designed to rival Nvidia's original Blackwell architecture. However, those chips won't ship to customers in high volumes until midyear, so Nvidia still has a significant first-mover advantage. But it's not all about the data center, because AMD is also a top supplier of AI chips for personal computers, which could be a big growth market in the future. Outside of the above stocks, the iShares ETF holds a number of other prominent AI hardware names. They include Micron Technology, which supplies memory and storage chips, and Taiwan Semiconductor Manufacturing, which fabricates most of the GPUs designed by Nvidia and AMD. The iShares ETF has a long track record of success President Donald Trump imposed a broad 10% tariff on all imported goods from America's trading partners in early April, in addition to a series of higher "reciprocal tariffs" on specific countries. However, semiconductors are exempt from the reciprocal levies, mainly because leading the AI race is a matter of national security for the U.S. Nevertheless, trade tensions could drive an economic slowdown, which might affect demand for chips in the short term as data center operators reevaluate their budgets. Data by YCharts. But here's the good news: The iShares Semiconductor ETF has delivered a compound annual return of 10.4% since it was established in 2001, beating the average annual gain of 7.8% in the S&P 500 over the same period. Plus, the ETF has delivered an accelerated annual return of 20.9% over the last 10 years specifically, thanks to the broad adoption of technologies like enterprise software, cloud computing, and now AI. The point is the iShares ETF has weathered a number of economic shocks during its 24-year history -- including President Trump's last tariff saga in 2018 -- while still delivering strong returns. If data center spending does grow to an annual rate of $1 trillion by 2028 as Jensen Huang predicts, then those returns are likely to continue (if not accelerate further). As a result, this might be a great time to buy the iShares ETF, especially considering its year-to-date dip of 16%. Should you invest $1,000 in iShares Trust - iShares Semiconductor ETF right now? Before you buy stock in iShares Trust - iShares Semiconductor ETF, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and iShares Trust - iShares Semiconductor ETF wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $607,048!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $668,193!* Now, it's worth noting Stock Advisor 's total average return is880% — a market-crushing outperformance compared to161%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of April 28, 2025
USA Today
16-04-2025
- Business
- USA Today
Stocks slide as White House curbs chip exports, despite strong economic data
Stocks slide as White House curbs chip exports, despite strong economic data Show Caption Hide Caption Senator Van Hollen travels to El Salvador for Abrego Garcia "We are going to keep fighting." Senator Van Hollen of Maryland left for El Salvador to push for Kilmar Abrego Garcia's release. A broad sell-off in the stock market intensified Wednesday as investors grappled with another twist in the ongoing U.S. trade war. The Dow 30 Industrials shed 140 points, 0.4%, to trade near 40,229 at midday, while the broad S&P 500 was off 1.1%, or 58 points, near 5,338. The tech-heavy Nasdaq Composite Index slid 2% to trade near 16,498, a loss of 325 points. Shares of behemoth chipmaker Nvidia tumbled nearly 6%. The company on Tuesday night announced that the U.S. government was limiting exports of one of its chips to China. Read next: White House's 245% tariff figure for some Chinese products causes confusion The 10-year U.S. Treasury note was little changed at 4.32%, down more than 20 basis points from its level last week, when a sharp sell-off rattled markets. Bond yields rise as prices fall, and vice versa. Gold tacked on another 3% to push above $3,300, a fresh record. The precious metal is now up more than 27% in the year so far. Corporate news Abbott Labs shares gained 5.5% after the healthcare products company reported results before the bell. Earnings slightly topped analyst expectations, but revenue missed. Share of semiconductor companies sank: the iShares Semiconductor ETF, which tracks those stocks, was off nearly 4%. Hertz shares surged more than 14% after hedge-fund manager Bill Ackman disclosed a stake in the rental car company. Economic news More: Imports to US remained at near record levels in February as tariff fears persisted Industrial production, or manufacturing and mining activity, rose by 0.7% in February 2025, the third consecutive month of increases and topping analyst expectations of a 0.2% rise. Retail sales rose 1.4% in March, the strongest monthly gain since January 2023, the government said, as shoppers hurried to get ahead of fresh tariff announcements. Federal Reserve Chair Jerome Powell is due to talk about the economic outlook in the afternoon.
Yahoo
16-04-2025
- Business
- Yahoo
Stocks open lower as White House restricts semiconductor exports, earnings season rolls on
Stocks fell after the opening bell Wednesday as investors grappled with another twist in the ongoing U.S. trade war. The Dow 30 Industrials shed 156 points, 0.4%, to open near 40,369, while the broad S&P 500 was off 0.2%, or 9 points, near 5,397. The tech-heavy Nasdaq Composite Index was little changed, near 16,823. Shares of behemoth chipmaker Nvidia tumbled nearly 6%. The company on Tuesday night announced that the U.S. government was limiting exports of one of its chips to China. The 10-year U.S. Treasury note was little changed at 4.32%, down more than 20 basis points from its level last week, when a sharp sell-off rattled markets. Bond yields rise as prices fall, and vice versa. Gold tacked on another 2.5% to push above $3,300. The precious metal is now up more than 27% in the year so far. Shares of Abbott Labs gained 4.5% after the healthcare products company reported results before the bell. Earnings slightly topped analyst expectations, but revenue missed. Semiconductor stocks sank: the iShares Semiconductor ETF, which tracks those stocks, was off nearly 4%. More: Imports to US remained at near record levels in February as tariff fears persisted Industrial production, or manufacturing and mining activity, rose by 0.7% in February 2025, the third consecutive month of increases and topping analyst expectations of a 0.2% rise. Retail sales rose 1.4% in March, the strongest monthly gain since January 2023, the government said, as shoppers hurried to get ahead of fresh tariff announcements. Federal Reserve Chair Jerome Powell is due to talk about the economic outlook in the afternoon. This article originally appeared on USA TODAY: Stocks open lower as trade war comes for chipmakers Sign in to access your portfolio
