VanEck Semiconductor ETF Sees Strong Fund Flows and Performance

VanEck Semiconductor ETF ( $SMH ) has risen by 0.97% in the past week. It has experienced a 5-day net inflow of $586 million.
This is due, in part, to market sentiment on some of the ETF’s largest holdings. For example:

• Nvidia Corporation has been making headlines with its impressive 69% year-over-year revenue increase, reaching $44.06 billion in Q1 Fiscal 2026, largely driven by its Data Center segment. Despite facing geopolitical challenges, such as U.S. export restrictions to China, Nvidia has shown resilience by redirecting sales to other regions. The company repurchased $14.1 billion in stock, indicating confidence in its future growth. Analysts remain bullish, with a Strong Buy consensus and a significant upside potential.
• Taiwan Semiconductor Manufacturing Company Limited is exploring the construction of an advanced production facility in the United Arab Emirates, contingent on U.S. approval. This move is part of TSMC’s global expansion strategy, which includes a new chip design center in Germany. The company continues to lead in semiconductor manufacturing, with strong financial performance and strategic expansions. Analysts have a Strong Buy consensus on TSMC stock, reflecting optimism about its growth prospects.
• Broadcom Inc. is set to announce its Q2 Fiscal 2026 results, with expectations of a 43% year-over-year surge in EPS and a 20% increase in revenue. The company’s stock has rallied significantly due to strong demand for its AI chips and networking solutions. Analysts are optimistic about Broadcom’s growth, highlighting its dominant position in the semiconductor industry and its expanding role in AI infrastructure. The stock has a Strong Buy consensus, with a notable upside potential.