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Semiconductor ETF (XSD) Hits New 52-Week High

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For investors seeking momentum, SPDR S&P Semiconductor ETF (XSD - Free Report) is probably on the radar. The fund just hit a 52-week high and has soared 105.9% from its 52-week low of $156.78 per share. 

Are more gains in store for this ETF? Let’s take a quick look at the fund and the near-term outlook on it to get a better idea of where it might be headed:

XSD in Focus

The semiconductor fund holds companies like Astera Labs (5.13%), Credo Technology (4.42%), IMPINJ Inc (3.69%), Advanced Micro Devices (AMD) and Rigetti computing. The ETF XSD charges 35 bps in fees (see: all technology ETFs here).

Why the Move?

Semiconductor space has been hot now as Trump and Britain joined forces on advancing AI, quantum computing and nuclear technologies. Microsoft, NVIDIA, other tech giants plan over $40 billion of new AI investments in the United Kingdom, as quoted on CNBC. With semiconductor being the backbone of the above-said technologies, ETFs like XSD had every reason to rally.

If this was not enough, Rigetti Computing was awarded a $5.8 million contract from the Air Force Research Laboratory (AFRL) to advance superconducting quantum networking. NVIDIA also announced a $5 billion investment in Intel.

More Gains Ahead?

XSD might remain strong, given its positive weighted alpha of 46.62 (per barchart.com). There is definitely still some promise for investors who want to ride on this surging ETF.


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