The iShares Semiconductor ETF Is Obliterating the S&P 500 in 2026, but Is It Still a Buy? The Answer Might Surprise You.

The iShares Semiconductor ETF (SOXX) has surged 108% in 2026, vastly outperforming the S&P 500's 10% gain, driven by strong demand for AI chips. While the ETF has a solid long-term track record, investors should exercise caution due to elevated valuations, supply-demand imbalances that may not persist, and emerging concerns about rising AI costs potentially dampening future chip demand.