Semiconductor ETFs Surge 70%+ in H1 2026, Overtaking Mag 7 as Goldman Shifts Investor Outlook

SMH-5.72%
SOXX-6.59%
DRAM-9.26%
According to Goldman Sachs, on Thursday the bank stated that investor appetite for Magnificent Seven names has declined in favor of artificial intelligence beneficiaries, particularly semiconductor companies. Derivatives specialist Brian Garrett noted that markets are rewarding companies generating returns from AI investments while questioning those bearing heavy spending burdens. He attributed the shift to hyperscalers such as Google, Meta, Microsoft, and Amazon pouring hundreds of billions into data center infrastructure without yet delivering proportional earnings growth. Performance data underscores the transition: the VanEck Semiconductor ETF (SMH) surged 72% in H1 2026, the iShares Semiconductor ETF (SOXX) jumped 99%, and the Roundhill Memory ETF (DRAM) more than doubled, while the Roundhill Magnificent Seven ETF (MAGS) marginally declined.
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