SOXX ETF Rises 23% in May with AMD Among Top Contributors, Falls 6% on AI Guidance Miss
AMD•The iShares Semiconductor ETF jumped 23% in May, led by top holdings Micron and AMD, driven by strong earnings and memory chip shortages. On Thursday, sector sentiment reversed as SOXX declined 6% and Intel fell 3% after Broadcom’s Q3 AI chip guidance of $16B disappointed expectations, dragging down AMD peers.
1. ETF Surge and AMD Leadership
The iShares Semiconductor ETF rallied 23% in May, driven by strong quarterly earnings reports and an anticipated memory chip shortage through 2029. AMD, as one of SOXX’s top holdings alongside Micron, contributed significantly to the sector’s upside with gains in CPU and GPU segments.
2. Broadcom Guidance Miss Sparks Sector Pullback
On Thursday, SOXX slid 6% after Broadcom reported Q3 AI chip sales of $16 billion versus $17.2 billion expected. The shortfall recalibrated investor expectations for high-multiple semiconductor names and prompted profit-taking across major chip stocks, including AMD peers.
3. Intel’s Sympathy Selloff and AMD Implications
Intel’s stock fell 3% in sympathy, testing its year-to-date rally, as the sector-wide shift highlighted potential volatility for AI-focused chipmakers. While AMD’s product roadmap remains robust, the pullback underscores how sensitive valuations are to AI demand forecasts and guidance levels.
