This Unstoppable ETF Has Turned $5,000 Into More Than $21,000 in 5 Years. Is It a Buy Right Now?

I see semiconductors the unsung heroes of the tech world. They're important parts of the exertion we usage each day, but the mean idiosyncratic has nary thought what they are oregon what they do. You tin deliberation of semiconductors arsenic the brains of galore electronics.

Semiconductor companies person ever been important, but with the existent AI boom, they've had overmuch much attention. And with this accrued attraction has travel a emergence successful the popularity of semiconductor stocks. However, alternatively of trying to prime idiosyncratic winners, galore radical person decided to thin connected semiconductor ETFs.

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The iShares Semiconductor ETF (NASDAQ: SOXX) has been a go-to for galore investors, and galore of them person been rewarded handsomely. In the past 5 years, SOXX is up 321% (as of marketplace adjacent connected June 3), meaning a $5,000 concern past would beryllium worthy astir $21,070 now. Given this awesome performance, is SOXX an automatic bargain close now?

SOXX's apical holdings person a batch of power

Semiconductor stocks person been rising overall, but overmuch of SOXX's occurrence has travel from its apical holdings, fixed its top-heavy composition. Below are its apical 10 holdings:

Data source: Invesco. Percentages arsenic of June 1, 2026.

The ETF holds 30 stocks, but the apical 2 stocks relationship for implicit 21% and the apical 10 for much than 62%, truthful their power is significant. Just this year, Micron and AMD are up implicit 254% and 145% twelvemonth to day (as of June 2), respectively.

Considering the awesome show of its apical holdings, SOXX's wide occurrence checks out. It's up astir 99% twelvemonth to date, starring each large indexes by a agelong shot.

Should investors expect the momentum to continue?

Semiconductors volition stay cardinal to technology, and semiconductor companies volition stay important parts of the tech ecosystem. However, that doesn't needfully mean the manufacture (and SOXX) volition acquisition the aforesaid benignant of maturation it has implicit the past fewer years.

Past results don't warrant aboriginal performance, and dynamics change, but 1 happening moving successful semiconductor companies' favour is the request for them arsenic companies physique retired information centers and different AI infrastructure that relies connected semiconductors. I spot that SOXX volition marque a bully semipermanent option, adjacent if it isn't a 4-bagger implicit the adjacent 5 years.