iShares Semiconductor ETF Rises 23% in May on Micron and AMD Strength
SOXX•The iShares Semiconductor ETF gained 23% in May, bolstered by robust earnings from Micron and AMD, and forecasts of memory chip shortages extending through 2029 alongside rising AI inference CPU demand. A Broadcom earnings miss and concerns over Google diversifying away from custom chips spurred a 6% Thursday pullback.
1. May Rally Driven by Earnings and AI Demand
The ETF surged 23% in May thanks to strong quarterly results from top holdings Micron and AMD. Forecasts of memory chip shortages through 2029 and escalating demand for CPUs in AI inference workloads provided additional tailwinds for semiconductor shares.
2. Pullback Linked to Broadcom Miss and Google Strategy Shift
On Thursday, the fund slipped 6% following a disappointing Broadcom earnings report. Investors also expressed concern over Google’s move to diversify away from custom chips, which could dampen future demand for certain semiconductor segments.
