Semiconductor ETFs ended mixed after chipmaker Intel Corp. (INTC) appointed Lip-Bu Tan as CEO, replacing interim co-CEOs David Zinsner and Michelle Johnston Holthaus. Shares jumped more than 15% in morning trading Thursday and held those gains into the close, boosting some exchange-traded funds with large allocations to the semiconductor maker.
FTXL, the First Trust Nasdaq Semiconductor ETF rose more than 2% initially, even as broad-market ETFs slipped, before closing with a gain of 0.8%. The fund allocates nearly 9% of its holdings to Intel—the most of any ETF. Intel is the third-biggest holding in the fund.
Wall Street is cheering the move as a sign that the company is ready to make a turnaround and revitalize the business, which has slumped in comparison to its competitors and the broad market.
Source: etf.com
Other ETFs initially benefited from Intel’s rise Thursday before falling back.
TINY, the ProShares Nanotechnology ETF rose by more than 2% in morning trading before ending slightly in the red, while CHPS, the Xtrackers Semiconductor Select Equity ETF, lost 0.2%. Intel is a top-10 holding in both funds.
SOXX, the iShares Semiconductor ETF, and SMH, the VanEck Semiconductor ETF, ended mildly lower after the initial jump as well. Both funds hold less than 4% of Intel.
Semiconductors have struggled this year as investors have questioned if aggressive growth from companies like Nvidia Corp. (NVDA) can be maintained.
Source: etf.com
After leading the market for most of last year, semiconductor performance faltered in November as supply and growth concerns weighed down the sector. SMH, the largest semiconductor ETF, has slipped by about 10% so far this year, compared to a 6.4% decline in SPY, the SPDR S&P 500 ETF Trust.
But chipmakers like Nvidia have said they expect robust growth as demand for AI and cloud computing remains high. The company gave strong guidance on revenue forecasts for the first quarter during its fourth-quarter earnings report.
Last week, President Donald Trump announced a $100 billion investment from Taiwan Semiconductor Manufacturing (TSM) in American chip manufacturing to build five new factories in the U.S. The president has called advancing American semiconductor manufacturing a matter of “national security.”
Editor’s note: This article has been revised with closing stock prices as of March 13, 2025, and other edits.
