How is SMH stock faring? The VanEck Semiconductor ETF has earned 46% year-to-date.
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What Moved the Market
The SMH ETF tracks the performance of the MVIS US Listed Semiconductor 25 index. Recently, it has drawn considerable attention due to high-profile deals being conducted in the AI sector.
The SMH ETF is moving lower primarily because most of its holdings are trending downward in pre-market trading today, as the AI-fueled rally loses momentum. Investors are concerned that AI stocks have become too expensive and may be overvalued. At the same time, there is uncertainty about legal and trade issues, such as the Supreme Court reviewing President Donald Trump’s authority on tariffs. These worries are likely making investors cautious about buying stocks right now.
Today’s SMH ETF Performance
According to TipRanks’ unique ETF analyst consensus, which is based on a weighted average of analyst ratings on its holdings, SMH is a Moderate Buy. The Street’s average price target of $385.78 implies an upside of about 7%.
Currently, SMH’s five holdings with the highest upside potential are STMicroelectronics (STM), Synopsys (SNPS), Microchip Technology (MCHP), Nvidia (NVDA), and NXP Semiconductors (NXPI).
Its five holdings with the greatest downside potential are Applied Materials (AMAT), Micron (MU), Intel (INTC), Teradyne (TER), and Lam Research (LRCX).
Revealingly, SMH’s ETF Smart Score is Eight, implying that this ETF is likely to outperform the market.
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