Indices

The iShares Semiconductor ETF gained 79% year-to-date and 152% over one year as of June 5, 2026, with the 2x leveraged proxy adding 196% over the same window. The trade is broadening from hyperscaler hardware into edge AI, quantum computing, and satellite compute—extending the supercycle's runway. Geopolitical fracture and rising ASIC design costs are reshaping the competitive landscape but have not reversed the trend.

Semiconductor indices reached all-time highs despite a persistent 3-4% DRAM and NAND shortage through 2026, driven by Nvidia-led AI infrastructure demand. High-bandwidth memory requirements for AI workloads are straining manufacturing capacity, creating premium pricing opportunities for memory suppliers. Intel's 18A process and Micron's US fab expansions aim to capture AI-era supply constraints worth billions.