iShares Semiconductor ETF Surges 30% Since March 30 Despite Oil Volatility
Since March 30, iShares Semiconductor ETF surged more than 30% on AI-driven demand, pushing the index to record highs despite volatile oil prices. Taiwan Semiconductor cites multi-supplier safety stocks for helium and hydrogen and government-backed energy agreements, while cloud giants lock in 10-20 year renewable power contracts.
1. AI Trade Fuels ETF Rally
The surge in AI-related demand has driven semiconductor stocks higher, pushing the iShares Semiconductor ETF over 30% above its March 30 low. Strong earnings from major chipmakers and robust margins have allowed the ETF to record consecutive highs, offsetting the impact of volatile oil prices.
2. Taiwan Semiconductor Strengthens Supply Chains
Taiwan Semiconductor has bolstered its operational resilience by sourcing specialty gases and chemicals like helium and hydrogen from multiple suppliers, maintaining safety stock levels across regions. The company also collaborates with Taiwan’s power authority and government agencies to secure stable energy supplies, mitigating risks from global commodity fluctuations.
3. Hyperscalers Lock In Renewable Energy Deals
Major cloud providers and hyperscalers are securing long-term power purchase agreements for renewable energy, locking electricity prices for the next 10 to 20 years. These contracts aim to shield data centers from rising energy costs and may accelerate investments in low-cost power technologies such as energy storage, carbon capture and grid optimization.