VanEck Semiconductor ETF Faces Fund Outflows Amid Strong Holdings

VanEck Semiconductor ETF ( $SMH ) has risen by 0.77% in the past week. It has experienced a 5-day net outflow of $164.48 million.
This is due, in part, to market sentiment on some of the ETF’s largest holdings. For example:

• Nvidia Corporation has been in the spotlight recently, with billionaire investor George Soros significantly increasing his stake in the company, reflecting a strong belief in its future prospects. Soros Fund Management’s holdings in Nvidia surged from 17,500 shares to 103,000 shares, marking a 1,600% increase from the first quarter. Despite potential challenges from looming tariffs on semiconductor imports announced by President Trump, Nvidia is taking strategic steps to bolster its U.S. manufacturing capabilities to mitigate these impacts. The company plans to produce substantial AI infrastructure domestically, strengthening its market position. Analysts maintain a Strong Buy consensus rating for Nvidia, with an average price target suggesting a modest upside.
• Taiwan Semiconductor Manufacturing Company Limited is experiencing strategic growth and financial robustness, with plans to phase out 6-inch wafer manufacturing to enhance efficiency in 8-inch production. TSMC Global has approved a capital increase of up to $10 billion to bolster financial capabilities. The company reported a significant revenue increase in July 2025, with a 22.5% rise from the previous month and a 25.8% increase from the previous year. Despite mixed market sentiments and recent stock volatility, analysts maintain a ‘Buy’ rating with a target price of $220. The stock has shown a year-to-date price performance of approximately 22.97%.
• Broadcom Inc. has caught the attention of George Soros, who increased his holdings of Broadcom stock to 37,000 shares from 11,000 shares previously. This move highlights Soros’s confidence in Broadcom’s potential, particularly in the AI infrastructure sector. Broadcom’s strategic positioning in advanced technologies and its robust financial performance contribute to its positive outlook. The company’s stock is seen as a strong player in the technology sector, with potential growth driven by its focus on AI and semiconductor advancements.