FTXL
PSI
SMH
SOXX
XSD
The money keeps showing up
Semiconductor stocks have been getting hit, but ETF investors apparently missed the memo. According to data highlighted by The Kobeissi Letter, U.S. semiconductor ETFs have pulled in $46 billion in net inflows so far in 2026, putting the group on pace for its biggest year ever.
That’s not a typo. It’s also about 31% of total assets under management for the category, which is a pretty wild vote of confidence when the sector is already in a correction.
Not exactly a calm chart
The weird part? The inflows are landing while the biggest names are still licking their wounds:
- SOXX is down 20.3% from its June 2 peak, officially in bear market territory
- DRAM ripped higher after launch, then slid about 35% from its June 22 high
- Even with that, the sector keeps attracting fresh cash like it’s got a VIP line outside the club
So what gives? Investors seem to be treating semis like the cleanest way to play the AI boom, even if the short-term tape looks a little bruised and dramatic.
AI is still the excuse — and the catalyst
This whole trade is being powered by one giant theme: AI infrastructure spending. The article points to heavy capex from hyperscalers like Microsoft, Amazon, Alphabet and Meta, plus demand for chips and memory from names like Nvidia, Broadcom, AMD, Micron and TSMC.
In other words, the market is saying: “Sure, the stocks look tired, but the end market still looks hungry.”
The charts say: patience, not party time
Technically, the setup is more “maybe the bleeding’s slowing” than “new moon mission.” SMH and SOXX both show improving momentum, with bullish MACD crossovers, but neither has fully flipped into a confirmed uptrend yet.
Big picture: investors are still crowding into semiconductors because the AI story remains intact, but the sector may need a real technical reset before the next leg higher gets a standing ovation.