Semiconductor exchange-traded funds (ETFs) have emerged as the top choice for retail investors in 2026, overshadowing crypto ETFs with significantly higher investment flows. Since January 2025, chip funds have attracted approximately $3.2 billion in net retail buying, according to J.P. Morgan data. This surge reflects a growing shift towards artificial intelligence (AI) equities, driven by substantial capital expenditures from major tech companies like Microsoft and Amazon, which are projected to spend between $600 billion and $720 billion on AI infrastructure this year. In April 2026, the VanEck Semiconductor ETF (SMH) and the iShares Semiconductor ETF (SOXX) collectively received $5.5 billion in inflows, setting a new monthly record. Meanwhile, the Philadelphia Semiconductor Index (SOX) rose by 38.7% over the same period. In contrast, crypto ETFs have struggled to keep pace, with Bitcoin spot funds drawing nearly $2 billion in April inflows, while Ethereum products showed weaker performance. The trend highlights a significant pivot in retail investment preferences towards semiconductor ETFs, driven by the booming AI sector.