PhonlamaiPhoto/iStock via Getty Images The iShares Semiconductor ETF ( SOXX ) seeks to track the investment results of the NYSE Semiconductor Index. SOXX enables an investor to have a concentrated exposure to the full semiconductor supply chain across designers, foundries, memory, and wafer fab equipment. With $24B in AUM, and a 0.34% ER, I am initiating SOXX on Seeking Alpha as a buy . Even with ...
PhonlamaiPhoto/iStock via Getty Images The iShares Semiconductor ETF ( SOXX ) seeks to track the investment results of the NYSE Semiconductor Index. SOXX enables an investor to have a concentrated exposure to the full semiconductor supply chain across designers, foundries, memory, and wafer fab equipment. With $24B in AUM, and a 0.34% ER, I am initiating SOXX on Seeking Alpha as a buy . Even with SOXX up 117% in the trailing 12 months, its holdings have an earnings growth runway that is of greater value than the risk of multiple compression. Seeing that SOXX trades around an ATH, it is easy to call it expensive and move on. However, after looking at the holdings and looking at who is paying the companies in the basket, the analysis for me stopped being about multiple compression, and more so about how much earnings growth is going to overwhelm whatever compression shows up. Capex to Hyperscalers The setup for the thesis is on the demand side. CreditSights projects that the top five HPC companies (AMZN, MSFT, GOOG, META, ORCL) will spend approx. $602B on capex in 2026, which is up 36% YoY from 2025. Additionally, 75% of that is expected to be on AI infrastructure. The reason I am initiating a buy instead of a hold is the funding mechanisms. Capital intensity of these companies has reached 45-57% of revenue , which is a ratio you typically observe within utilities, not software companies. To fund this, hyperscalers raised about $108B in 2025, with MS and JPM projecting the sector to need $1.5 trillion in new debt over the next few years to continue the AI buildout. Once bonds are issued and funds are given to these companies, that money gets spent. GS projects a cumulative hyperscaler capex of approx. 1.15T from 2025-2027 , which is double what was spent from 2022-2024. This is the huge transfer of corporate capital, and 75% of this flows directly into the SOXX basket. Earnings The backdrop from within the industry confirms the demand for the semiconductors industry. ...
Crowd turns out to welcome duke and duchess, who are combining public visits to worthy causes with private money-making appearances When Prince Harry and Meghan walked through the doors of Melbourne’s Royal children’s hospital just after midday on Tuesday, a hush came over the crowd of staff and patients gathered to greet them. It was followed by a soft, collective “hiii” – as though the crowd fel...
Crowd turns out to welcome duke and duchess, who are combining public visits to worthy causes with private money-making appearances When Prince Harry and Meghan walked through the doors of Melbourne’s Royal children’s hospital just after midday on Tuesday, a hush came over the crowd of staff and patients gathered to greet them. It was followed by a soft, collective “hiii” – as though the crowd felt that speaking too loudly might scare the duke and duchess away. The couple walked in almost without ceremony on this first stop on their four-day Australian tour , greeting hospital management in the foyer before making their way around the arc of people gathered to see them, paying particular attention to children. Continue reading...