A Research-Driven Approach to Identifying Potential Semiconductor Winners
When investors think about AI, attention often centers on the companies designing the most advanced chips. However, the opportunity extends across the semiconductor ecosystem, including processing and memory chips, foundries, equipment, materials, packaging, and testing.
Who Benefits When Semiconductor Demand Grows?
As AI adoption accelerates, the need for semiconductors to process, move, and store massive amounts of data is increasing.
Growing semiconductor demand can create opportunities across multiple parts of the value chain.
Why Look Beyond a Single Stock?
Concentrating on a single stock can create company-specific risk and may cause investors to miss opportunities elsewhere in the semiconductor ecosystem. Some of the most significant beneficiaries may emerge from areas such as memory, equipment, packaging, testing, or manufacturing rather than just one or two widely recognized chip designers.
The challenge isn’t just identifying today’s winner, it is also not missing the next winner. Rather than relying on one company to capture the full opportunity, some investors may prefer exposure to multiple potential beneficiaries across the semiconductor value chain. A broader approach can help reduce single-stock risk while participating in a wider range of companies positioned to benefit from long-term technology trends.
Additionally, while some companies have emerged as early leaders in AI, different segments of the semiconductor industry may benefit at different stages of the AI adoption cycle, creating opportunities for a wider range of companies to participate in AI-driven growth over time.
Why Look Beyond Broad Semiconductor Indexes?
Many semiconductor indexes provide broad exposure through portfolios containing dozens of holdings. While diversification can be beneficial, broad portfolios may also dilute exposure to the companies most directly positioned to benefit from emerging semiconductor trends.
CPU takes a more focused approach, using thematic purity and momentum to identify 10 semiconductor leaders. The result is a concentrated portfolio designed to provide targeted exposure across key areas of the semiconductor ecosystem.
Semiconductor Demand Extends Beyond AI
Importantly, the opportunity extends beyond AI data centers. Semiconductors are increasingly powering autonomous vehicles, robotics, industrial automation, and connected devices. For example, modern vehicles are becoming increasingly software-defined, requiring greater semiconductor content to support advanced driver assistance systems, connectivity, electrification, and autonomous driving technologies.1
As AI becomes embedded across industries, the companies enabling these advancements may come from many different areas of the semiconductor ecosystem.
A Research-Driven Approach to Identifying Semiconductor Leaders
Discover CPU, The Amplify Top 10™ Semiconductors ETF.
CPU’s investment process is powered by Bloomberg’s thematic research framework. The process begins with companies identified as having meaningful exposure to semiconductor-related activities including chip designers, foundries, equipment providers, materials, testing, and packaging manufacturers. It then evaluates them based on revenue and thematic relevance, helping prioritize businesses with stronger connections to the semiconductor theme.
The portfolio then incorporates momentum characteristics to help identify companies demonstrating market leadership and strengthening trends. By combining thematic purity and momentum, CPU seeks to identify 10 semiconductor leaders positioned to benefit in the current market environment.
For investors seeking a focused approach to companies helping power the future of AI and advanced computing, CPU offers concentrated exposure to 10 potential winners across the semiconductor ecosystem.
Related Resources:
1PwC, The Silicon Powered Future of the Car Industry, 2025.
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