VanEck Semiconductor ETF ( $SMH ) has fallen by 1.46% in the past week. It has experienced a 5-day net inflow of $3.52 billion.
This is due, in part, to market sentiment on some of the ETF’s largest holdings. For example:
- Nvidia Corporation stayed at the center of the global AI race as reports showed Beijing’s Moonshot AI using about 20,000 H200 GPUs obtained via Alibaba, despite U.S. export bans, and possibly renting newer Blackwell chips through Southeast Asia. These leaks highlight Nvidia’s unmatched AI pricing power but also rising geopolitical and regulatory risks, even as industry chatter suggests the firm is preparing further GPU price hikes that could lift revenues.
- Taiwan Semiconductor Manufacturing Company Limited attracted investors with insider buying and plans to raise chipmaking prices by 5%–10% from 2027 to offset soaring costs, including a massive $100 billion Arizona build-out. Analysts and AI tools rate the stock a Strong Buy/Outperform, citing strong margins and leadership in advanced 2nm–3nm nodes, while Cathie Wood’s ARK funds used the recent sector pullback to add TSM shares, reinforcing confidence in its AI-driven growth story.
- Broadcom Inc. saw its shares pull back about 22% from highs, yet commentators argue its AI networking strength in Ethernet switching, optics, and advanced packaging gives it durable advantages regardless of which accelerators win. Semiconductor sales are soaring and management expects AI chip revenue above $100 billion annually by 2027, supported by a five-year AI partnership with Samsung worth over $200 billion, while Wall Street maintains a Strong Buy view with targets implying around 30%–37% upside despite valuation and margin concerns.