BlackRock manages over $10 trillion in client funds, claiming the title of the world’s biggest asset manager.
A hefty part of that, around $3.3 trillion, comes from its iShares branch, boasting over 1,400 ETFs.
Among these is the iShares Semiconductor ETF (NASDAQ: SOXX). With heavy hitters like Nvidia (NASDAQ: NVDA) in its top AI stocks, it’s a star performer.
The iShares Semiconductor ETF recently performed a stock split and it’s done wonders. In the past five years, the ETF has seen annual returns of 30.3% dwarfing the S&P 500’s (SNPINDEX: ^GSPC) average of 15.1%.
So, in March, it reached heights of $680, pricing out some smaller investors. Seeing this, iShares executed a 3-for-1 stock split, reducing the per share price by two-thirds.
The underlying asset value didn’t change, but the shares became far more affordable.
Now a share is priced around $234 (at the time of writing), making it much more accessible. Anticipate a continuation of this momentum with the AI expansion.
Consistent investments of $400 monthly could turn into $1 million long-term.
Think of it as a variety pack of the best chip stocks. The semiconductor industry is what’s driving AI.
Necessary tools like Nvdia’s advanced data center chips wouldn’t be possible otherwise. Nvidia’s GPUs are known as the industry’s most powerful, and skyrocketing sales now place Nvidia as the third-largest global company with a $2.93 trillion valuation.
Quite the jump from a $360 billion market cap at 2023’s start. AI has been a huge value creator. Several of the 30 stocks in the iShares Semiconductor ETF contribute significantly to the AI industry, especially the top five, who account for 36.9% of the portfolio’s total value. 1.
Nvidia 10.29% 2. Broadcom 7.59% 3. Qualcomm 7.50% 4. Advanced Micro Devices 6.44% 5. Micron Technology 5.13% This data was correct until May 31, 2024, and may change.
Broadcom isn’t just an AI company providing data center hardware, it also develops AI software solo as well as through subsidiaries like cybersecurity powerhouse Symantec.