SOXX Semiconductor ETF Surges 96% in 2026, Then Whipsaws 8%

The iShares Semiconductor ETF (SOXX) has experienced one of the most volatile round trips in its history. The fund is up 96% year to date and 148% over the past 12 months, yet it just shed nearly 8% in a single week, closing near $590.

Potential Causes

The whipsaw was triggered by Broadcom's (AVGO) softer AI chip sales forecast, raising concerns about the sustainability of demand for AI-related semiconductors. The ETF has heavy exposure to companies like NVIDIA (NVDA), Micron (MU), and Applied Materials (AMAT), which could be impacted by any slowdown in AI spending.

Context

Despite the weekly decline, the fund remains up over 90% year to date, reflecting ongoing optimism in the AI sector. However, the big question is whether this growth can continue without strong AI chip sales support.

Similar Moves in the Sector

Other semiconductor stocks experienced similar volatility. For example, NVIDIA fell over 5% in the same week, while AMD dropped 4%. This indicates the entire sector is sensitive to any change in AI expectations.