Discover the key semiconductor leaders building the hardware engine behind the global AI boom.
The July edition of this model portfolio provides targeted exposure to market-leading pioneers in the semiconductor ecosystem and electronic design automation, anchored by industry leaders such as Synopsys.
These companies provide the critical silicon architecture, intellectual property, and software tools necessary to manufacture the advanced chips driving artificial intelligence, cloud computing, and next-generation digital infrastructure. Structured exclusively through individual equities without ETF involvement, the strategy assumes a baseline capital deployment of $55,000.
This material is prepared solely for educational and illustrative purposes and does not constitute formal financial advice. Because price targets represent an indicative analyst consensus, investors should consult a licensed financial professional prior to making any investment decisions.
Without ETFs, you cannot buy the “whole market” in a single purchase, so risk is spread across ten companies throughout the chip value chain: design (Synopsys, Cadence), manufacturing (TSMC), chip and AI designers (Broadcom, NVIDIA), and equipment makers (ASML, Applied Materials, KLA, Lam Research). Texas Instruments adds a more stable, dividend-paying stock as a cushion.
Beware of single-sector concentration: the entire portfolio is in one industry. Synopsys therefore has a meaningful but not dominant weight; however, without ETFs or other sectors, the portfolio is more volatile and may fall sharply in a bad year.
Target prices = indicative analyst consensus estimates (~12 months); upside = increase from prices as of 10–13 July 2026. ASML trades in euros; all others in US dollars. Calculate the number of shares based on the price and exchange rate on the purchase date.
In Q1 2026, institutions shifted heavily into semiconductors. According to a Reuters review of 13F filings, nearly 5,000 of about 6,600 institutions bought at least one of the 17 semiconductor stocks tracked.
The semiconductor weight in hedge funds’ long positions climbed to a record ~19%—the highest level ever and more than double the level at the start of the year. Money flowed into chips at the expense of software.
Note: these are sector-wide data; purchases by individual funds across our ten stocks vary from filing to filing.
Key Points This Month
Synopsys (SNPS) – the global leader in electronic design automation (EDA) software; the core of the theme, but at a reasonable weight.
Cadence (CDNS) – the other major EDA player and Synopsys’s direct competitor; together they form the backbone of chip design.
ASML – the most advanced chips cannot be made without its lithography systems; it has virtually no competition.
TSMC (TSM) – the world’s largest chip foundry, manufacturing for NVIDIA, Apple and others; the core of the entire value chain.
Broadcom (AVGO) and NVIDIA (NVDA) – major chip designers and key drivers of AI demand, which also supports demand for Synopsys tools.
Applied Materials (AMAT), KLA (KLAC), Lam Research (LRCX) – make equipment for chip manufacturing, inspection and etching; a different part of the same value chain.
Texas Instruments (TXN) – a more stable, dividend-paying producer of mainstream chips; it adds stability and regular income to the portfolio.
Themes This Month
Target prices are indicative analyst consensus estimates (~12 months), not guarantees. Texas Instruments’ current price is slightly above the target, meaning analysts expect stability rather than growth.
Invest gradually (e.g., in tranches over several months), not all at once—this reduces the risk of poor timing.
Without ETFs or bonds, the portfolio is more volatile; expect that its value may fall sharply in a bad year.
For foreign stocks, remember currency risk (USD, EUR) and dividend taxation (e.g., Form W-8BEN for US stocks).
Review the weights once a year and, if necessary, return the portfolio to its target allocation (rebalance).
Portfolio Allocation
Positions
10
Period
JULY 2026
Portfolio Holdings
Prices as of JULY 2026.
| Ticker | Name | Price | Target | Weight |
|---|---|---|---|---|
| SNPS | Synopsys | 446 | 570 | 13% |
| CDNS | Cadence Design Systems | 375 | 410 | 11% |
| ASML | ASML Holding | 1.758 | 2.165 | 12% |
| TSM | Taiwan Semiconductor | 434 | 490 | 12% |
| AVGO | Broadcom | 400 | 505 | 10% |
| NVDA | NVIDIA | 211 | 302 | 9% |
| AMAT | Applied Materials | 602 | 700 | 9% |
| KLAC | KLA Corporation | 232 | 265 | 8% |
| LRCX | Lam Research | 353 | 375 | 8% |
| TXN | Texas Instruments | 311 | 300 | 8% |