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iShares Semiconductor ETF (SOXX) - free report >>
First Trust NASDAQ Semiconductor ETF (FTXL) - free report >>
TrueShares Technology, AI and Deep Learning ETF (LRNZ) - free report >>
AXS Esoterica NextG Economy ETF (WUGI) - free report >>
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Beyond AI, Semiconductor ETFs Have Another Reason to Rally
The global PC market, which has been suffering so far, is recording a notable turnaround, with IDC reporting a 3% expansion in the recent quarter, marking the second successive quarter of growth after seven quarters of decline, per a Yahoo Finance article. Gartner also points to a recovery, albeit slightly slower at 1.9%. Notably, the PC segment suffered due to pandemic-related early sales and the resultant decline in demand.
Factors Driving Growth
The resurgence can be accredited to increasing enterprise purchases of laptops and desktops alongside the buzz surrounding AI-powered PCs. Non-AI PC refresh cycles are also contributing significantly to this positive trend.
Major chipmakers like Intel, AMD and NVIDIA faced sharp declines during the market downturn but are now poised for recovery. They are actively investing in and working on the AI PC trend, launching specialized hardware and software solutions aimed at enhancing PC capabilities.
AI PC Market Outlook
The emergence of AI PCs equipped with neural processing units represents a new growth avenue. Microsoft's Copilot+PCs and similar offerings from Intel, AMD and NVIDIA highlight the industry's shift to integrating AI capabilities into mainstream computing.
Qualcomm has also entered this space, promising performance comparable to Apple's leading laptop models. As consumer and enterprise demand is reshaping, the focus on AI integration is expected to boost the PC sector.
New-Generation Chip Launches: ETFs to Bet On
Big chipmakers have been racing to introduce new-generation artificial intelligence (AI) chips. There have been announcements from Intel, Advanced Micro Devices and NVIDIA. Investors can bet on chip ETFs like Strive U.S. Semiconductor ETF (SHOC - Free Report) , AXS Esoterica NextG Economy ETF (WUGI - Free Report) , Invesco PHLX Semiconductor ETF (SOXQ - Free Report) , TrueShares Technology, AI & Deep Learning ETF (LRNZ - Free Report) , iShares Semiconductor ETF (SOXX - Free Report) and First Trust NASDAQ Semiconductor ETF (FTXL - Free Report) .