Between June 22 and late July 2026, investors funneled nearly $25 billion into semiconductor ETFs even as their prices plunged between 15% and 51%. This surge in buying amid falling prices reveals strong conviction in chip stocks.
The flow of capital targeted four main ETFs: the Roundhill Memory ETF (DRAM) led with $8.8 billion in inflows, followed by iShares Semiconductor ETF (SOXX) at $8.5 billion, Direxion Daily Semiconductor Bull 3X ETF (SOXL) with $5.1 billion, and VanEck Semiconductor ETF (SMH) adding $2.3 billion.
Despite the declines, total inflows for semiconductor ETFs in 2026 have hit around $46 billion, more than twice the combined inflows from 2017 to 2025. The DRAM fund presents a paradox down almost 40% from its peak but still holding assets near $25.9 billion thanks to fresh investments.
SMH posted a year-to-date gain of 46.9% even after falling 15.3%, meaning long-term holders maintain solid profits. SOXL, a leveraged ETF that dropped over 50%, still attracted $2.6 billion, highlighting investors' appetite for high-risk exposure.
The driving force behind this dip buying is the growing belief in AI’s long-term impact. Chips power AI infrastructure, from data centers to memory bandwidth. Investors view these ETFs as strategic plays on AI’s expansion rather than short-term trades.
This content is for informational purposes and does not constitute financial advice.
