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The semiconductor space is starting to split. The iShares Semiconductor ETF (SOXX) is up more than 90% so far this year, but not every stock is keeping up. A few names are surging on AI demand, while others are lagging behind. A big reason for this has to with expectations.
AI chip revenue is on track to pass $1 trillion in 2026, up almost 31% year-over-year (YOY), and the largest cloud players are expected to spend about $500 billion on capex this year. In this kind of market, anything short of a strong outlook can trigger a sharp selloff, and that is exactly what happened to Broadcom (AVGO).
