Broadcom, Nvidia, and AMD Could Help This Unstoppable ETF Turn $250,000 Into $1 Million in 10 Years

In This Article:

Key Points

  • Data center spending could top $1 trillion per year by 2028 to meet surging demand for computing capacity driven by artificial intelligence (AI).

  • Suppliers of data center chips and components, such as Nvidia, Broadcom, and Advanced Micro Devices, could be poised for significant growth.

  • The iShares Semiconductor ETF holds those three stocks along with 27 others, and it could turn $250,000 into $1 million over the coming decade.

  • 10 stocks we like better than iShares Trust - iShares Semiconductor ETF ›

Nvidia (NASDAQ: NVDA) CEO Jensen Huang thinks that data center operators will spend $1 trillion every year on chips and infrastructure by 2028 to meet growing demand for computing capacity from next-generation artificial intelligence (AI) models.

That spending will be an enormous tailwind for Nvidia, which supplies the world's most powerful data center chips for AI development. But the benefits will also flow through to the company's competitors, not to mention suppliers of other data center hardware components. There is an opportunity for investors to profit from this tech revolution, and buying an exchange-traded fund (ETF) might be the simplest way to do so.

The iShares Semiconductor ETF (NASDAQ: SOXX) invests exclusively in suppliers of chips and components, and its top holdings happen to be three of the biggest names in AI: Nvidia, Broadcom (NASDAQ: AVGO), and Advanced Micro Devices (NASDAQ: AMD). The ETF has outperformed the broader stock market since its establishment in 2001, and here's how it could turn an investment of $250,000 into $1 million within the coming decade.

A digital render of a computer chip with the letters AI protruding out of it in rainbow colors.
Image source: Getty Images.

The biggest names in AI hardware in one ETF

Some ETFs hold thousands of different stocks, but the iShares Semiconductor ETF holds just 30. It aims to offer investors exposure to companies that design, manufacture, and distribute semiconductors, primarily those that stand to benefit from megatrends such as AI.

Since the ETF was established in 2001, it has helped investors successfully navigate several tech revolutions driven by the internet, enterprise software, smartphones, and cloud computing. It's now heavily geared toward AI, and its top five holdings are among the biggest names in the hardware side of the industry:

Stock

iShares ETF Portfolio Weighting

1. Broadcom

10.07%

2. Nvidia

8.74%

3. Texas Instruments

7.49%

4. Advanced Micro Devices (AMD)

7.30%

5. Qualcomm

5.83%

Data source: iShares. Portfolio weightings are accurate as of June 4, 2025, and are subject to change. ETF = exchange-traded fund.