Semiconductor ETFs surge 89% year to date as AI and data-center spending drive chip industry to $298.5 billion in Q1 2026 revenue

The iShares Semiconductor ETF (SOXX) is up 89% year to date. Semiconductor revenue reached $298.5 billion in the first quarter of 2026, up 25% from the fourth quarter of 2025, driven by AI and data-center demand.

The ETF tracks the NYSE Semiconductor Index and holds a concentrated basket of 30 large-cap and mid-cap stocks, including Micron Technology, Advanced Micro Devices, and Marvell Technology, with an expense ratio of 0.34%.

IDC's April forecast predicted that the semiconductor market will exceed the $1 trillion revenue threshold by the end of 2026. However, the article cautions that semiconductor stocks and ETFs can be volatile, and that AI popularity could decline due to hype fatigue, slower-than-expected adoption, or constraints on power and data-center buildouts.