As semiconductor stocks surge on Monday, investors can look to two Invesco ETFs for semiconductor exposure.
The Invesco PHLX Semiconductor ETF (SOXQ )+ and the Invesco Dynamic Semiconductors ETF (PSI ) each offer exposure to the semiconductor industry. SOXQ and PSI are each up over 4% on Monday. SOXQ and PSI have each increased around 16% year to date.
Ahead of big tech’s fourth quarter earnings reports this week, semiconductor stocks were lifted on positive sentiment from Wall Street analysts, with Barclays upgrading or raising its price target on a few name-brand semiconductor stocks.
In mid-day trading, shares of Nvidia (NVDA) are up over 6%, while rival graphics-chip maker Advanced Micro Devices (AMD) is up over 7%. Qualcomm (QCOM) has gained nearly 6%, and ON Semiconductor Corporation (ON) has increased nearly 5.5%.
Microsoft announced in a blog post on Monday it would extend its partnership with OpenAI, the firm behind text generator ChatGPT and image generator Dall-E, “through a multiyear, multibillion dollar investment to accelerate AI breakthroughs to ensure these benefits are broadly shared with the world.”
Rapid growth in ChatGPT usage could result in $3 billion to $11 billion in sales for Nvidia over 12 months, Citigroup Inc estimated last week.
PSI is based on the Dynamic Semiconductor Intellidex℠ Index, which is designed to provide capital appreciation by thoroughly evaluating companies based on a variety of investment merit criteria, including: price momentum, earnings momentum, quality, management action, and value. The index is comprised of common stocks of 30 U.S. semiconductors companies.
SOXQ is based on the PHLX Semiconductor Sector Index, which measures the performance of the 30 largest U.S.-listed securities of companies engaged in the semiconductor business. Semiconductors include products such as memory chips, microprocessors, integrated circuits, and related equipment that serve a wide variety of purposes in various types of electronics, including in personal household products, automobiles, and computers, among others.
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