Semiconductors: The Top Performing Sector You're Probably Not Invested In

The semiconductor sector has massively outperformed the broader market and tech sector over the past 10 years. The iShares Semiconductor ETF (SOXX) has returned 742% in the last decade.

Many investors avoid semiconductors due to volatility and fast-changing technology, but buying an ETF provides diversification across winners and losers.

Semiconductors are benefiting from AI and other innovative technologies, with strong projected growth ahead.

Nvidia has done very well, but 7 of the top 10 best performing S&P 500 stocks of the past decade are semiconductor companies.

Despite higher valuations now, semiconductors remain a compelling long-term investment given increasing connectivity and automation globally.