Unstoppable Semiconductor ETF to Buy for the 2025 Artificial Intelligence (AI) Spending Boom

If semiconductors could talk, they would say, "Get us into the iShares Semiconductor ETF (SOXX), we belong there!" Throughout this period of turmoil, we have seen a level of generalization about whole companies, whole industries, and whole sectors that makes me sick, because it shows how little homework most people, including commentators, do. I know there are plenty of people who say, "I don't talk about individual stocks, or, I am not allowed to talk about individual stocks," and it makes me sick. Can you imagine if someone were to come on ESPN and say he couldn't talk about individual teams, let alone individual players? "I can't talk about teams in the NFL but I like those in the AFC south more than NFC East?" Value added? But there is nothing worse than what's going on right now when people talk about the semiconductors. Their blanket endorsement of the group leads uniformed investors to ETFs, which have the best -- Nvidia (NVDA), Advanced Micro Devices (AMD) -- mushed into the worst, which is Intel (INTC). So, what I want to do is deconstruct the edifice and tell you what you are really buying, or at least the preponderance of the companies that you are buying, so it is not the blind leading the blind. Let's start with the AI chipmakers. Nvidia and AMD are at the forefront of developing AI chips for data centers and personal computers. Nvidia's recent launch of its new Blackwell GPUs for data centers offers up to 30 times more performance than its original flagship H100 GPU, making them highly sought after in the AI market. AMD is also expected to grow significantly in this segment as it plans to start shipping a Blackwell competitor in the second half of 2025, called the MI350. Broadcom, another top holding in SOXX, makes AI accelerators and networking equipment for data centers, which are in high demand during the AI spending boom. The ETF also holds other important chip stocks, such as Taiwan Semiconductor Manufacturing (TSMC), which fabricates many of the AI chips designed by Nvidia and AMD, and Micron Technology, which supplies industry-leading memory and storage chips for AI workloads. Now, of course, there are other semiconductors and other usages, but these are the companies you see in the SOXX ETF. What is my point here, besides telling you what they do? I am trying to get people educated into knowing what they own. I want them to recognize that there is no homogenization. Intel was king of the semis. Now it is AMD and Nvidia. That doesn't show up in the ETFs. Nor will the Nvidia buy of Arm Holdings. Far too often companies create ETFs that lure people into buying the good and the bad. These ETFs denigrate by making them part of a mediocre basket -- and I have had it with the notion that companies and managements do not matter, only sectors do. May I suggest going forward that you know your stocks, know your managements, and know the greatness of the exes -- or not, and buy the best and leave the rest to those who don't know what they are talking about and aren't going to bother to do the homework, the discipline that I always say is at the heart of what I teach.