SOXX ETF

Artificial intelligence (AI) has the potential to be the most significant technology of our time. As it continues to advance, the costs of development remain high due to the need for large data centers and specialized chips from companies like Nvidia. According to Morgan Stanley, Microsoft, Amazon, Alphabet, and Meta Platforms are expected to invest a total of $300 billion in AI data center infrastructure and chips by 2025.

Artificial intelligence (AI) could be the most transformational technology in a generation. AI chatbots like OpenAI's ChatGPT can already answer complex questions and instantly generate computer-generated text, images, and even new software code on command.

Looking for broad exposure to the Technology - Semiconductors segment of the equity market? You should consider the iShares Semiconductor ETF (SOXX), a passively managed exchange traded fund launched on 07/10/2001.

The semiconductor sector is poised for a cyclical recovery, boosted by AI development with EPS growth forecasted at 32% for 2025. Despite a 12-month gain of 30%, the sector remains attractively valued with a 25% upside potential for 2025, supported by consensus price targets. The sector's high EPS growth does not come at an expensive price, with a 23x P/E target under a 1.0x PEG ratio, indicating room for expansion.

Artificial intelligence (AI) might be the most revolutionary technology in a generation. Depending on which Wall Street forecast you rely on, AI could add $7 trillion (Goldman Sachs), $15.7 trillion (PwC), or even $200 trillion (Ark Investment Management) to the global economy over the coming decade.

Investing in ETFs can be a powerful way to diversify your portfolio, but knowing which ones to buy (and which to sell) is an important question to ask.

This exchange-traded fund could be a millionaire-maker as the artificial intelligence revolution gathers steam.

SMH and SOXX offer exposure to a highly attractive semiconductor space that strives in the ongoing AI revolution. AI's increasing demand drives semiconductor growth, with both ETFs' holdings like NVIDIA and Broadcom providing essential hardware for AI advancements. Investors who choose to avoid cherry-picking in the first place should be better off with SOXX as it offers a higher degree of diversification than comparable SMH.

Looking to sharpen or diversify your portfolio? Check out two exchange-traded funds that could offer both stability and long-term growth potential.