Chip ETF Climbs 2% as Intel-SK Hynix Talks and TSMC's August Surge Fuel Sector Rally

iShares MSCI Global Semiconductors ETF closed at EUR 16.79, up 2%, as Intel-SK Hynix talks and strong TSMC revenue lifted chip stocks.

The iShares MSCI Global Semiconductors UCITS ETF USD Acc advanced 2.0% on Wednesday, closing at EUR 16.79, as a broad-based recovery swept through global chip stocks. The fund's gains were powered by heavyweights including Intel, AMD and Marvell — the trio at the center of the artificial intelligence and data-center infrastructure buildout.

Intel in the Spotlight

Reports of talks between Intel and South Korea's SK Hynix drove notable demand for the US chipmaker. The discussions reportedly center on SK Hynix manufacturing memory chips on American soil for the first time. Melius Research reinforced the bullish case, reiterating its buy rating on Intel with a USD 165 price target, citing the company's foundry prospects.

AMD and Marvell also posted solid gains. In Europe, French supplier Soitec stood out after JPMorgan upgraded the stock to "Overweight" and doubled its price target, pointing to rising demand for optical interconnect technology in AI server networks.

TSMC and ASML Anchor the Fundamentals

Industry data underscored the sector's momentum. TSMC, the world's largest contract chipmaker, reported August revenue growth of 53.3% year-over-year, with Bloomberg noting that demand for AI infrastructure continues to outstrip the company's available capacity. Meanwhile, Reuters reported that Dutch equipment maker ASML is working with major chipmakers on deploying high-NA lithography systems for larger semiconductors. TSMC plans to use these tools in mass production of advanced nodes starting in 2030, while Samsung Electronics is eyeing their adoption for DRAM volume production from 2028.

The company also raised its fourth-quarter AI outlook, pointing to strong demand visibility through fixed customer agreements.

On a sector-wide basis, the numbers back up the uptrend. According to the Semiconductor Industry Association, global semiconductor sales reached USD 146.8 billion in July 2026.

What's Next on the Calendar

Investors now turn to upcoming corporate events: Micron Technology reports fiscal fourth-quarter results on September 30, 2026, followed by Marvell's investor day on October 6, 2026.

Fund Profile and Valuation

The BlackRock exchange-traded fund tracks the MSCI ACWI IMI Semiconductors & Semiconductor Equipment ESG Screened Select Capped Index, which spans large-, mid- and small-cap companies across 23 developed and 24 emerging markets. With a total expense ratio of 0.35% per year, the fund has gained 76% year-to-date.

Shares outstanding stood at 309,000,000, unchanged from the prior day. The fund's 52-week high sits at EUR 21.52. Investors are now weighing persistently strong demand for computing power against chipmakers' medium-term capacity expansion plans.