Bank of America Says Long Semiconductors is the “Most Crowded Trade Ever”

Semiconductor stocks are strongly outperforming in 2026: the VanEck Semiconductor ETF (SMH) is up 66.69% YTD and the iShares Semiconductor ETF (SOXX) is up 88.78%. The broad outperformance suggests risk-on positioning in the chip sector, likely supportive for semiconductor-related equities.

Analysis

Semiconductor stocks are strongly outperforming in 2026: the VanEck Semiconductor ETF (SMH) is up 66.69% YTD and the iShares Semiconductor ETF (SOXX) is up 88.78%. The broad outperformance suggests risk-on positioning in the chip sector, likely supportive for semiconductor-related equities.