AI Boom Fuels Historic Semiconductor Rally: SOXX, SMH ETFs Lead with Billions In Record April Inflows

The technology trade is back with chip stocks witnessing an astounding rally, driving gains in semiconductor ETFs. iShares Semiconductor ETF (NASDAQ:SOXX), VanEck Vectors Semiconductor ETF (NASDAQ:SMH), SPDR S&P Semiconductor ETF (NYSE:XSD) and First Trust Nasdaq Semiconductor ETF (NASDAQ:FTXL) are all rising.

Historic Semiconductor Stocks Rally

According to a Thursday post on X by The Kobeissi Letter, the Philadelphia Semiconductor Index has gained for 16 consecutive trading sessions, surging 38.7% and putting the index on pace for its biggest monthly gain since February 2000. The winning streak has officially surpassed the previous record stretch of 15 days posted in 2014.

As per the post, SOXX and SMH have collectively pulled in $5.5 billion so far in April, "already surpassing any other full month of inflows on record."

SOXX has absorbed $2.05 billion in April inflows, more than double its previous monthly record, while SMH has pulled in $3.4 billion, also an all-time high for the fund.

ETFs To Consider

iShares Semiconductor ETF

SOXX follows the ICE Semiconductor Index and offers exposure to companies that design, manufacture and distribute semiconductors. It has $27.8 billion in assets under management (AUM) and has an expense ratio of 0.34%. The ETF trades in a volume of about 7 million shares a day.

Benzinga Edge Stock Rankings indicate SOXX has a Momentum score in the 94th percentile and maintains a strong price trend in the short, medium and long term.

VanEck Vectors Semiconductor ETF

SMH follows the MVIS US Listed Semiconductor 25 Index, which measures the performance of the most liquid companies in the industry based on market capitalization and trading volume. It has an AUM of $53.7 billion and trades in an average daily volume of about 9 million shares. The ETF charges 0.35% in annual fees.

Benzinga Edge Stock Rankings indicate SMH has a Momentum score in the 92nd percentile and maintains a strong price trend in the short, medium and long term.

SPDR S&P Semiconductor ETF

With an AUM of $2.1 billion, XSD tracks the S&P Semiconductor Select Industry Index. It has an expense ratio of 0.35% and trades an average daily volume of about 41,000 shares.

Benzinga Edge Stock Rankings indicate XSD has a Momentum score in the 92nd percentile and maintains a strong price trend in the short, medium and long term.

First Trust Nasdaq Semiconductor ETF

FTXL tracks the Nasdaq US Smart Semiconductor Index. With an AUM of $1.9 billion, it trades in an average daily volume of 157,000 shares and has an expense ratio of 0.60%.

Benzinga Edge Stock Rankings indicate FTXL has a Momentum score in the 95th percentile and maintains a strong price trend in the short, medium and long term.

AI Demand Fuels Semiconductor Optimism

The momentum in semiconductor stocks came on the back of strong AI-driven earnings. Analysts like Adam Parker previously said that robust earnings growth, especially in semiconductors, is underpinning the broader market. Parker described these chips as his “North Star” due to their central role in the ongoing multi-year AI buildout, which he believes is not a bubble.

Moreover, Wedbush’s Dan Ives noted that his checks in Asia revealed robust demand across chip supply chains, indicating the AI cycle shows no signs of slowing.

Here, we presented the performances of the four ETFs over one month and year-to-date:

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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