Nvidia's dominance in the semiconductor trade faces a new challenge. As of July 2026, AMD holds an 8.43% weighting in the iShares Semiconductor ETF, nearly matching Nvidia's 8.53% stake. Micron Technology is close behind at 7.63%.
The ETF, which tracks 30 chipmakers, has delivered a 76% year-to-date return. This strong performance masks a significant internal rotation. Back in May, Micron led the fund, with AMD second and Nvidia third.
The shift reflects AMD's growing strength in data centers and the critical role of Micron's memory chips for expanding AI models. These companies are capturing market share in a growing sector, not because Nvidia is weakening.
For investors, the rotation highlights the importance of looking beyond single-stock bets. Competitors like Broadcom are also creating value through custom chip designs. However, the sector's rapid appreciation carries valuation risk, especially if AI investment slows or supply chains face disruption.