SMH - ETF AI Analysis

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VanEck Semiconductor ETF (SMH)

Rating:76Outperform

Price Target:―

SMH, the VanEck Semiconductor ETF, earns a solid overall rating largely because many of its biggest positions—like TSMC and ASML—show strong financial performance, positive outlooks around AI-related demand, and supportive technical trends. Other major holdings such as Nvidia, Broadcom, and Micron also add to the fund’s appeal through their growth in AI chips and data center markets, though their rich valuations introduce some risk. The main factors that hold the rating back are weaker names like Intel, along with broader risks such as high valuations across the portfolio and exposure to regulatory and trade issues, especially related to China.

Positive Factors

Strong Recent Performance

The ETF has shown solid gains over the past month and quarter, indicating positive recent momentum in its holdings.

Leading Semiconductor Holdings

Many of the top positions, such as Micron, Lam Research, ASML, KLA, Intel, AMD, and Applied Materials, have delivered strong year-to-date performance, helping drive the fund’s returns.

Large Asset Base

The fund manages a very large pool of assets, which can support liquidity and trading efficiency for investors.

Negative Factors

High Stock Concentration

A significant portion of the portfolio is concentrated in a few names like Nvidia, TSMC, and Broadcom, increasing the impact if any of these stocks struggle.

Sector Concentration Risk

With nearly all exposure in the technology sector and specifically semiconductors, the ETF is highly sensitive to downturns in this single industry.

Mixed Performance Among Top Holdings

Some major holdings such as Nvidia and Broadcom have shown weak year-to-date performance, which can offset gains from stronger stocks in the portfolio.

SMH vs. SPDR S&P 500 ETF (SPY)

AUM46.16B

RegionGlobal

Expense Ratio0.35%

Beta1.90

IssuerVanEck

Inception DateMay 05, 2000

Dividend Yield0.27%

Asset ClassEquity

Index TrackedMVIS US Listed Semiconductor 25

Share Statistics

EPS (TTM)N/A

Shares OutstandingN/A

10 Day Avg. Volume7,025,293

30 Day Avg. Volume7,002,080

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)N/A

P/FCF RatioN/A

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

487.84

Price Target Upside― Downside

Rating ConsensusStrong Buy

Number of Analyst Covering25

EPS Forecast (FY)N/A

Revenue Forecast (FY)N/A

SMH Summary

The VanEck Semiconductor ETF (SMH) tracks the MVIS US Listed Semiconductor 25 Index and focuses on companies that design and make computer chips, which power phones, laptops, cars, and data centers. It holds major names like Nvidia and TSMC, along with other leading chip makers. Someone might invest in SMH to tap into the long-term growth of technology and get instant diversification across many semiconductor companies instead of picking single stocks. A key risk is that it is heavily concentrated in the semiconductor and tech sector, so its price can swing sharply up or down.

How much will it cost me?The VanEck Semiconductor ETF (SMH) has an expense ratio of 0.35%, meaning you’ll pay $3.50 per year for every $1,000 invested. This is slightly higher than the average for ETFs because it is a sector-focused fund that requires more active management to track the semiconductor industry. However, it may be worth it for investors seeking targeted exposure to this fast-growing sector.

What would affect this ETF?The VanEck Semiconductor ETF (SMH) could benefit from increasing demand for semiconductors driven by advancements in AI, cloud computing, and electric vehicles, as well as global digital transformation trends. However, it may face challenges from geopolitical tensions affecting key players like TSMC, regulatory changes, or economic slowdowns that reduce consumer and corporate spending on technology. Interest rate hikes could also impact growth-oriented companies within the ETF's portfolio.

SMH Top 10 Holdings

SMH is a pure play on global chipmakers, and a handful of giants really steer the ship. Nvidia is such a big position that its recent wobble has taken a bit of shine off the fund, even as Taiwan Semiconductor quietly keeps things moving in the right direction. The real horsepower lately has come from Micron, Intel, and equipment makers like Lam Research and Applied Materials, which have been rising on AI and memory demand. Overall, this is a highly concentrated semiconductor bet, dominated by U.S. names with a key boost from Taiwan.

Name	Company Name	Weight %	Market Value	Market Cap	Yearly Gain	Overall Rating
NVDA	Nvidia	18.51%	$8.58B	$4.57T	34.11%	76 Outperform
TSM	TSMC	10.89%	$5.05B	$1.57T	80.10%	81 Outperform
AVGO	Broadcom	7.09%	$3.29B	$1.58T	47.30%	76 Outperform
MU	Micron	6.50%	$3.01B	$473.78B	304.49%	79 Outperform
ASML	ASML Holding	5.94%	$2.75B	$559.08B	96.33%	81 Outperform
LRCX	Lam Research	5.81%	$2.69B	$299.82B	166.67%	77 Outperform
AMAT	Applied Materials	5.47%	$2.53B	$293.12B	110.12%	77 Outperform
TXN	Texas Instruments	5.01%	$2.32B	$202.67B	6.91%	78 Outperform
KLAC	KLA	4.87%	$2.26B	$194.03B	89.02%	77 Outperform
ADI	Analog Devices	4.76%	$2.21B	$169.25B	41.62%	78 Outperform

SMH Technical Analysis

Technical Analysis Sentiment

Positive

Last Price―

Price Trends

50DMA

385.05

Positive

100DMA

365.01

Positive

200DMA

320.69

Positive

Market Momentum

MACD

6.59

Positive

RSI

57.32

Neutral

STOCH

75.28

Neutral

Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For SMH, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 404.36, equal to the 50-day MA of 385.05, and equal to the 200-day MA of 320.69, indicating a bullish trend. The MACD of 6.59 indicates Positive momentum. The RSI at 57.32 is Neutral, neither overbought nor oversold. The STOCH value of 75.28 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SMH.

SMH Peer Comparison

Comparison Results

Name	Price	Price Target	AUM	Expense Ratio	Overall Rating
SMH	―	―	$46.16B	0.35%	―
CIBR	―	―	$10.16B	0.58%	―
IGF	―	―	$10.08B	0.39%	―
IXN	―	―	$6.47B	0.39%	―
TDIV	―	―	$3.77B	0.50%	―
CHPS	―	―	$35.60M	0.15%	―

Performance Comparison

SMH

VanEck Semiconductor ETF

410.20

167.54

69.04%

CIBR

First Trust NASDAQ Cybersecurity ETF

―

IGF

iShares Global Infrastructure ETF

―

IXN

iShares Global Tech ETF

―

TDIV

First Trust NASDAQ Technology Dividend Index Fund

―

CHPS

Xtrackers Semiconductor Select Equity ETF

―

Glossary

BuyAn ETF rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF is likely to deliver higher returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldAn ETF rated as a "Hold" s expected to perform in line with the overall market or a specific benchmark. This rating indicates that the ETF is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellAn ETF rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF may deliver lower returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst ETF Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in ETFs carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: ―

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