Investors looking for diversified exposure to Advanced Micro Devices (AMD) without holding the stock directly should keep an eye on the VanEck Semiconductor ETF (SMH) and the Invesco AI and Next Gen Software ETF (IGPT). Both these ETFs give AMD meaningful weight while also providing broader exposure to the tightening HBM3E memory market, the 5GW data center buildout, and rising demand for U.S.-made AI chips.
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Why AMD Is One of the Hottest AI Trades of April 2026
AMD has become one of the most talked-about names in the semiconductor sector this month, thanks to several catalysts reshaping the AI landscape. The stock hit a new 52-week high of $352.99 in Friday’s trading session. Despite the rally, DA Davidson analyst Gil Luria remains highly bullish on AMD stock. He upgraded the rating to Buy from Neutral and raised the price target by 70% to $375.
- MI450 Catalyst: AMD’s next‑gen MI450 AI accelerator is gaining traction as cloud providers look for alternatives to Nvidia (NVDA). Early performance buzz and testing by major hyperscalers have pushed AMD into the center of the AI infrastructure conversation.
- “Intel Sympathy” Trade: Intel’s (INTC) 25% jump today lifted sentiment across the entire U.S. chip sector. Investors see the rebound as a sign that domestic semiconductor manufacturing, and U.S. AI hardware suppliers overall, are entering a new growth phase. AMD is a key beneficiary of this renewed confidence.
- HBM3E Shortage Tailwind: The global shortage of HBM3E memory keeps tightening, and AMD is benefiting from the same supply chain dynamics lifting Micron (MU). With demand for HBM far exceeding available supply, AMD’s accelerator roadmap is positioned to gain from premium pricing and limited competitor capacity.
2 ETFs Offering Strong AMD Exposure
VanEck Semiconductor ETF (SMH)
SMH is one of the most popular semiconductor ETFs, known for its heavy concentration in leading chipmakers. It tracks the MVIS US Listed Semiconductor 25 Index, which consists of chip designers, manufacturers, and equipment suppliers.
AMD is one of SMH’s top holdings, giving investors direct exposure to its AI accelerator momentum while also capturing strength from Nvidia, Broadcom (AVGO), and TSMC (TSM). Overall, the ETF has $53.60 billion in assets under management (AUM) and an expense ratio of 0.35%. Over the past three months, the SMH ETF has generated a return of 19.6%.
On TipRanks, SMH has a Strong Buy consensus rating based on 22 Buys and three Holds assigned in the last three months. At $534.67, the average SMH ETF price target implies 5.48% upside potential.
Invesco AI and Next Gen Software ETF (IGPT)
IGPT holds companies building AI‑driven software, cloud tools, and next‑gen applications, all of which require massive compute power. The ETF leans into high‑growth software names that stand to benefit as AI adoption accelerates across businesses and industries. Apart from AMD, the ETF includes other top companies, such as Intel, Alphabet (GOOGL), and Meta (META).
Overall, the ETF has $792.67 million in assets under management (AUM) and an expense ratio of 0.56%. Over the past three months, the IGPT ETF has generated a return of 14%.
On TipRanks, IGPT has a Moderate Buy consensus rating based on 65 Buys and 18 Holds assigned in the last three months. At $82.63, the average IGPT ETF price target implies 9.91% upside potential.
