The iShares Semiconductor ETF (SOXX) gained 11% in September. This positive momentum continued into October. Positive investor reaction to Meta Platforms' new Muse AI personal agent drove much of this advance. This boosted sentiment across the semiconductor sector. Intel and AMD, top ETF holdings, saw significant gains. These companies are major beneficiaries of agentic AI.
Micron's strong earnings report also supported the early October performance. The report signaled a prolonged AI boom. This boom stems from tight memory supply conditions. These conditions are expected to last into 2028. A cooler-than-expected U.S. employment report also eased concerns over potential interest rate hikes. This provided an additional tailwind for chip stocks. It also supported the broader market.