JPMorgan Intel Upgrade Lifts Chip ETF 3.7% as Thai Investors Gain a New Route Into the Global Supply Chain

The iShares MSCI Global Semiconductors UCITS ETF USD Acc climbed 3.7% on Monday to EUR 17.01, snapping a brutal stretch that had pushed the global chip sector into its longest losing run since 2008. The rebound followed a broad recovery across US technology exchanges, where the Philadelphia Semiconductor Index had just posted an 11.4% weekly decline — its steepest since March 2025 — after falling for eight straight sessions.

At the heart of the turnabout was JPMorgan's decision to raise Intel from "Underweight" to "Neutral." Analyst Harlan Sur pointed to a solid start to the company's turnaround under its current leadership and to expanding demand for AI workloads, which he expects to underpin future earnings estimates. Intel's upgrade rippled through premarket trading, with AMD, Nvidia and Micron all advancing ahead of the opening bell. A modest dip in US Treasury yields added further support for rate-sensitive technology names.

Market watchers are treating the session as an early signal that the selloff — set off by inflation worries and mounting doubts over capital spending — may have found a floor for now. The fund's price sits roughly 11% above its 200-day moving average, a reading that points to an intact long-term uptrend even after a sharp correction from its June peak.

A Local Door to a Global Value Chain

Monday also brought a structural development underlining the ETF's strategic reach. Asset Plus opened the subscription window for A-GSEMI, a new feeder fund that will invest exclusively in the iShares product, giving Thai investors their first access to the worldwide semiconductor supply chain through a domestic vehicle. The underlying index spans chip design, manufacturing, memory solutions and semiconductor equipment. According to the fund managers, sustained data-center buildout and demand for high-performance AI processors continue to support the sector's long-term growth prospects, short-term market swings notwithstanding.

Flows Tell a Different Story Than Prices

That vote of confidence from Bangkok echoes what BlackRock reported last Wednesday alongside its third-quarter results: iShares semiconductor products ranked among the firm's ETFs with the heaviest inflows. Thematic chip funds and South Korea-focused country products drew particularly strong demand, suggesting institutions and longer-horizon investors used the pullback to add exposure to a strategically vital industry.

The buying came against a grim backdrop. Friday's session alone cost the ETF 4.0%, leaving it at EUR 16.53 and 23% below its 52-week high of June 22. Rising interest rates, questions about the near-term profitability of AI investments and mounting competitive pressure from Chinese producers all weighed on sentiment. Reuters reported signs of technological breakthroughs at Chinese memory maker CXMT, feeding fears of a price war and lost market share for established global players — with worries over oversupply colliding with higher financing costs to sap risk appetite.

Even bullish voices struggled to reverse Friday's slide. Arete Research lifted its price target on sector bellwether Nvidia sharply, from USD 283 to USD 369, a call closely watched given the stock's central weighting in the ETF's index — yet the broader downtrend held.

Earnings and a Trillion-Dollar Question

Attention now shifts to this week's quarterly reports. Lam Research and Texas Instruments will offer a read on real demand in equipment and analog chips, while results from Tesla and Meta could shed light on the spending appetite of the largest cloud providers. The backdrop remains contested: Goldman Sachs projects the five biggest AI players will invest a combined USD 1.2 trillion next year, whereas firms such as Gartner caution about a potential gap between massive infrastructure outlays and the actual profitability of new applications.