Behind the Frenzy of Chip Stocks: Can the AI Wave Continue to Drive Up Semiconductor ETF?

Question

This year&#39;s performance of chip-related ETFs has been astonishing. From the beginning of the year to the end of September, the global semiconductor index soared by 34%, far exceeding the rise of the US stock market. What is the driving force behind this? One word: **AI**.## The Crazy Spending of Big Tech CompaniesAccording to the latest data from Gartner, global AI spending is expected to reach $1.5 trillion by 2025 and is projected to exceed $2 trillion by 2026. Where will this huge amount of money be spent?Amazon, Google, Microsoft, and Meta, the four major tech giants, have seen their capital expenditure plans for the fiscal year 2025 surge: rising from an earlier estimate of $325 billion to $364 billion, with the increase mainly coming from investments in AI infrastructure and data centers. In other words, this wave of AI enthusiasm is not just hot air, but real money being invested.## Why Chip Stocks Are SoaringWhat do AI model training and inference require? **Advanced chips**. Chip design companies like NVIDIA and Broadcom, and manufacturing and equipment suppliers like TSMC and ASML, the entire industry chain is benefiting from this wave of dividends.Key data: AI chip revenue is expected to maintain a compound annual growth rate of 40% in the coming years, with the potential to quadruple by 2028. This is not a P2P scheme; it is genuine industrial demand.## How can retail investors participate? ETF is a way of thinking.Buying NVIDIA directly can easily lead to pitfalls (one company&#39;s risk is high), while diversifying holdings is too troublesome. **Semiconductor ETF** provides a compromise solution - a fund that covers the entire industry chain.**Comparison of Several Mainstream Players**:- **SMH** (VanEck): Size $33.1 billion, annual rise 41.6%, fee 35bps, NVIDIA accounts for 18%- **SHOC** (Strive US Version): Size of $128 million, annual rise of 42.6%, fees of 40bps, with a greater focus on local companies.- **SOXX** (iShares): Size $15.26 billion, annual rise 34.9%, fees 34bps, holdings more diversified.- **SOXQ** (Invesco): Size of $53.35 billion, annual rise of 36.7%, with a minimum fee of only 19bps, selecting the top 30 leaders.Which one to choose? It depends on your preference - if you pursue scale, choose SMH/SOXX; if you want something cheaper, choose SOXQ; if you want to bet on new forces, choose SHOC.## Risks Cannot Be IgnoredThe trade friction between the US and China, along with sudden geopolitical changes, could disrupt the situation at any time. This is why investing in ETFs is more risk-resistant than picking individual stocks — if one stock crashes, the other holdings can still remain stable.**Core Logic**: AI really has market demand as a support, and chips are the necessary path. But don&#39;t go All in; a diversified allocation is the way to survive.