The artificial intelligence story is red hot.
In fact, with all the excitement, the Ai market is expected to grow from about $100 billion to more than $20 trillion by 2030, according to Statista. All as AI transforms everything around us including supply chains, law, medicine, finance, security, etc.
However, it’s not just AI stocks and ETFs getting swept up in the boom, semiconductor stocks are, too. After all, semiconductors are essential for AI expansion. They’re driving innovations and facilitating machine learning models to tackle more complex tasks faster than ever before.
So, it comes as no surprise that semiconductor stocks and ETFs are being accumulated.
VanEck Semiconductor ETF (SMH)
Look at the VanEck Semiconductor ETF(SMH), for example.
Since 2023 kicked off, the ETF exploded from about $205 to about $265 before pulling back to strong double-bottom support at $247. From here, we’d like to see the SMH ETF again challenge resistance around $265 again soon. With an expense ratio of 0.35%, some of its top holdings include Nvidia, Taiwan Semiconductor, Advanced Micro Devices, Intel, Qualcomm, Broadcom, Lam Research, and dozens more.
First Trust NASDAQ Semiconductor ETF (FTXL)
Or, take a look at the First Trust NASDAQ Semiconductor ETF (FTXL). Since Jan, the ETF ran from a low of about $52 to a high of $65 before pulling back to support at $58. From here, we’d like to see it bounce back to resistance at $65. With an expense ratio of 0.60%, some of the fund’s top holdings include Intel, Micron Technology, Broadcom, Qualcomm, Nvidia, and another 26 holdings.
Invesco Dynamic Semiconductors ETF (PSI)
There’s also the Invesco Dynamic Semiconductors ETF (PSI), which ran from $97.50 to $122.50 before dropping to support around $107.69. From here, we’d like to see it test $122.50 again. With an expense ratio of 0.55%, some of its top holdings also include Nvidia, Micron Technology, Lam Research, Broadcom, Applied Materials, and dozens more.
