--- title: "Chip funds rose 2.5% as software ETFs fell 4.5%" url: "https://etf.net/news/chip-funds-rose-2-5-as-software-etfs-fell-4-5-2026-09-05" published_at: "2026-09-05T12:58:04.037Z" updated_at: "2026-09-05T12:58:04.037Z" byline: "ETF.net Research" --- # Chip funds rose 2.5% as software ETFs fell 4.5% VanEck's semiconductor ETF gained 2.5% in the week through Friday, September 4; iShares' expanded software fund dropped 4.5%, with Palo Alto Networks and Palantir the largest drags. By ETF.net Research. Published Sep 5, 2026. Nvidia, the AI-chip designer, accounted for more than the entire weekly gain in the $121 billion Technology Select Sector SPDR ETF XLK. The software fund that Salesforce lifted a week ago was cut instead by its two largest holdings. Through Friday, September 4, that is the split inside tech: hardware that feeds the AI buildout was bid, and software that had already been paid for last week's enthusiasm was not. Chart: Software sold midweek; **semis caught bid Friday** XLK rose **0.86%**. Nvidia is 14.9% of the fund and advanced 5.9%, adding 0.88 percentage points. The Invesco S&P 500 Equal Weight Technology ETF RSPT fell **0.94%**. Cap-weighted tech worked this week because a handful of chip names worked. Table: Exposure, Fund, Week, YTD ## Nvidia, memory, and Broadcom's bill The VanEck Semiconductor ETF SMH rose **2.5%**. Nvidia is **23.8%** of that fund and contributed 1.4 percentage points, more than half the week's move. Micron, the memory-chip maker, did not report. It still rose **9.0%**, including 6.1% on Friday. Sandisk, the NAND-flash producer, jumped 17%, 11.9% of it on Friday. Intel rose 7.1%. August payrolls of **162,000**, with unemployment unchanged at 4.1%, arrived Friday morning. SMH rose **2.6%** that session and the iShares Semiconductor ETF SOXX 3.5%. A hotter labor print did not interrupt the memory bid. SOXX, which caps its largest names, rose **2.2%** for the week. Nvidia is 9.5% of that fund against 23.8% in SMH, and Micron, at 8.9%, contributed more to SOXX this week than Nvidia did. Credo Technology, which sells connectivity chips used in AI data centers, was a separate hit. It reported fiscal first-quarter revenue of $479 million against $473 million estimated and adjusted earnings of $1.20 a share against $1.17. The shares still fell 20% on Wednesday and **27%** for the week, wiping 0.52 percentage points from SOXX, almost as much as Nvidia put in. Broadcom, the custom AI-accelerator and networking supplier, supplied the week's real earnings test. On Wednesday it reported fiscal third-quarter revenue of $29.6 billion, up 86% from a year earlier, and non-GAAP earnings of $3.32 a share against $3.22 estimated. AI semiconductor revenue was **$16.7 billion**, up 221% year over year and 54% from the prior quarter. Chief executive Hock Tan said demand for custom AI accelerators and networking "continues to be very strong" and pointed to $21.7 billion of AI semiconductor revenue in the current quarter, up 236% from a year ago. Fourth-quarter revenue was guided to about **$34.8 billion**, up 93%, short of the **$35.03 billion** analysts expected. The shares fell **2.7%** on Thursday and **3.0%** for the week. They sit **28%** below a 52-week high of $495 and are up only 3.8% this year. That is the bill: a guidance miss against a $35.03 billion bar, and a stock still 28% under its high even after AI silicon revenue more than tripled. Nvidia does not have that problem. It closed Friday at $230.36, 2.6% under its 52-week high, and on Thursday agreed to buy Hugging Face, the open-source AI model platform, for **$12.93 billion**. The iShares Future AI & Tech ETF ARTY, a 49-name fund with Nvidia the largest holding at 4.9%, rose **2.1%** and is up 58% year to date. The Global X Artificial Intelligence & Technology ETF AIQ, 88 names with Palantir the largest at 4.0%, managed **0.16%**. Palantir subtracted 0.26 percentage points. Cadence Design Systems and Synopsys, the chip-design software pair, fell **14%** and **11%**. Neither company reported this week. Chart: **Sandisk** jumped 17%; **Credo** fell 27% on a beat ## Palo Alto's beat, Adobe's succession, Snowflake's fade The iShares Expanded Tech-Software Sector ETF IGV fell **4.5%**, giving back the week Salesforce, the customer-software company, had just delivered. Salesforce itself added 0.09 percentage points this week. Palantir, the fund's largest holding at 10.3%, and Palo Alto Networks, at 9.6%, subtracted **1.65** percentage points together. Palo Alto Networks, the cybersecurity platform, reported fiscal fourth-quarter results after Tuesday's close: adjusted earnings of $1.02 a share against $0.98 estimated, and revenue of $3.41 billion against $3.35 billion. The shares fell **9.3%** on Wednesday and **10.3%** for the week. They are still up **81%** this year. The iShares Cybersecurity and Tech ETF IHAK fell 3.6% with it. The First Trust Cloud Computing ETF SKYY dropped 2.2%. Adobe fell **6.7%** on Friday after naming Anil Chakravarthy as its next chief executive, succeeding Shantanu Narayen, who becomes executive chair on December 1. The shares are down **24%** this year and **8.6%** on the week. Snowflake, the cloud data platform, was the software print that actually moved. After Wednesday's close it reported fiscal second-quarter revenue of **$1.55 billion** against $1.48 billion estimated and adjusted earnings of $0.62 a share against $0.45. Product revenue was $1.49 billion, up 37% from a year earlier. Remaining performance obligations were $9.00 billion. Full-year product revenue guidance rose to $6.07 billion, or 36% growth, from $5.84 billion. Chart: Snowflake **spiked** on the beat, then faded Friday ## What Friday's prices assume Friday's closes treat custom AI silicon and high-bandwidth memory as scarce, and most application software as already paid up. Broadcom can print $16.7 billion of AI chips and guide the next quarter to $21.7 billion and still finish the week lower, **28%** under its high, after missing a **$35.03 billion** revenue consensus with a **$34.8 billion** guide. Nvidia can spend $12.93 billion on the model hub the rest of the industry uses and finish near its own high. Micron can add 9% without reporting. Palo Alto Networks can beat and drop 10%. SMH is up **57%** this year and still 16% below its 52-week high. SOXX is up **73%** and 21% below its high. IGV is down **1.0%** in 2026. Hardware was bid this week; software had to clear more than a beat. Source: etf.net, https://etf.net/news/chip-funds-rose-2-5-as-software-etfs-fell-4-5-2026-09-05. Please cite the page URL.