Can TACO & Earnings Deliver New High? Spotlight on SOXQ ETF with the Semiconductor Rebound.
πππThe market is pulsating with a raw, undeniable energy as we witness a breathtaking rebound. It is a testament to the relentless drive of innovation that refuses to be sidelined.
The TACO trade - Trump Always Chickens Out, has transitioned from a lighthearted Wall Street joke into a serious psychological catalyst.
The Pattern: Investors have found success buying dips triggered by aggressive policy rhetoric, betting on the inevitable pivot or delay that sparks a relief rally.
The Deadline: With recent ceasefire agreements and softened tariff tones, the market is eyeing a potential "mother of all TACOs" to clear the path for fresh record territory.
Earnings Power: Supporting this narrative is a robust 19% projected earnings growth for 2026. Analysts have been raising estimates despite macro headwinds, viewing fundamentals as the ultimate anchor.
The Engines of the Breakout: AI Cloud, Storage and Semiconductors
While the broad indices fluctuate, the core of this breakout is being forged in the specialised sectors that power the future:
AI Cloud & Infrastructure: Hyperscaler capital expenditure remains relentless, shifting focus from pilot programs to core enterprise operations.
Enterprise Storage: Data volume is projected to explode to nearly 240 zettabytes this year. Storage is no longer a discretionary item. It is a vital foundation for AI architectured like Retrieval Augmented Generation (RAG).
Semiconductors: This sector has officially walked out of its cyclical low. AI related hardware revenues are forecasted to soar toward USD 700 billion by late 2026, driven by a desperate need for processing power and high bandwidth memory.
Spotlight on SOXQ ETF: The Picks and Shovels Play
For those investors looking to capture this momentum, $Invesco PHLX Semiconductor ETF(SOXQ)$ has become a great ETF to buy due to the recent semiconductor rebound.
SOXQ tracks the PHLX Semiconductor Sector Index providing exposure to the 30 largest US listed semiconductor companies.
SOXQ's top holdings are heavily concentrated in the Titans of AI and Infrastructure, with the top 10 positions representing about 59.2% of SOXQ.
$NVIDIA(NVDA)$
$Broadcom(AVGO)$
$Micron Technology(MU)$
Expense ratio: 0.19% making SOXQ one of the most cost efficient semiconductor ETFs available.
Performance of SOXQ: It recently hit a 52 week high of USD 72.61, up 30% YTD and 139% in just 1 year.
Dividend Yield: 0.41%
Valuation: SOXQ has a P/E ratio of 35.90 and a P/B ratio of 7.46 as of March 2026.
Can TACO and Earnings Deliver New High?
If the TACO logic holds and upcoming earnings reports validate high growth forecasts, SOXQ is well positioned to lead a tech driven push to new highs. It remains the most cost efficient ETF for long term semiconductor bulls.
As Warren Buffett has famously said
"Price is what you pay, value is what you get".
With SOXQ investors are paying a significantly lower price in management fees to capture the immense value of the silicon that powers our modern world.
The wise play here is to avoid getting distracted by the daily noise of the market and focus on whether the world will need more chips tomorrow than it does today. If the answer is Yes, you simply let the compounding do the heavy lifting.
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