After a slow start in 2024, the semiconductor market is bouncing back, driven by the ever-growing demand for microchips, particularly due to the rise of artificial intelligence (AI). As a result, the time looks ripe to invest in strong semiconductor ETFs VanEck Semiconductor ETF (SMH), Invesco Semiconductors ETF (PSI), and SPDR S&P Semiconductor ETF (XSD), which are poised to benefit from the industry’s expansion.
Generative AI, in particular, has sparked massive investment across the tech sector, creating a surge in the need for semiconductors. The Semiconductor Industry Association (SIA) recently reported that global semiconductor sales reached $57.80 billion in November, up 20.7% year over year and 1.6% from October’s $56.90 billion. It’s clear that demand for chips is growing, and with the rise of AI, that momentum will only accelerate.
