1 Unstoppable Semiconductor ETF to Buy Hand Over Fist for the 2025 Artificial Intelligence (AI) Spending Boom
Late last year, Morgan Stanley issued a forecast suggesting Amazon, Microsoft, Alphabet, and Meta Platforms could spend a combined $300 billion on data center infrastructure and chips to power their artificial intelligence (AI) ambitions during 2025. A close look at some of the forecasts issued by those companies more recently suggests they might even exceed Morgan Stanley's estimate. A lot of that spending will flow to hardware giants like Nvidia (NASDAQ: NVDA), Broadcom (NASDAQ: AVGO), and Advanced Micro Devices (NASDAQ: AMD), which supply the most advanced data center chips and networking equipment for AI development.The iShares Semiconductor ETF (NASDAQ: SOXX) is an exchange-traded fund (ETF) that holds a portfolio of 30 top hardware stocks including the three mentioned above. It's currently down 21% from its record high, which offers investors a rare opportunity to buy it at a discount, and with so much AI hardware spending in the pipeline this year, here's why it might be a good idea to do so.Continue reading
Late last year, Morgan Stanley issued a forecast suggesting Amazon, Microsoft, Alphabet, and Meta Platforms could spend a combined $300 billion on data center infrastructure and chips to power their artificial intelligence (AI) ambitions during 2025.
A close look at some of the forecasts issued by those companies more recently suggests they might even exceed Morgan Stanley's estimate. A lot of that spending will flow to hardware giants like Nvidia (NASDAQ: NVDA), Broadcom (NASDAQ: AVGO), and Advanced Micro Devices (NASDAQ: AMD), which supply the most advanced data center chips and networking equipment for AI development.
The iShares Semiconductor ETF (NASDAQ: SOXX) is an exchange-traded fund (ETF) that holds a portfolio of 30 top hardware stocks including the three mentioned above. It's currently down 21% from its record high, which offers investors a rare opportunity to buy it at a discount, and with so much AI hardware spending in the pipeline this year, here's why it might be a good idea to do so.
