How is SMH stock faring? The VanEck Semiconductor ETF has lost 2.5% over the past five trading sessions but has earned about 44% 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, the ETF has attracted significant attention because of major deals taking place in the AI industry.
Technology and AI-related stocks are moving lower in pre-market trading today due to a combination of reasons. Japan’s SoftBank Group (SFTBY) sold off its entire stake in chip giant Nvidia (NVDA) for $5.83 billion, causing NVDA stock to drop more than 2%.
Moreover, AI infrastructure provider CoreWeave (CRWV) cut its Q4 guidance due to infrastructure timing issues at one data center and challenges in securing sufficient compute power. This news dragged its shares down 8% at the time of writing.
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 $382.30 implies an upside of 7.6%.
Currently, SMH’s five holdings with the highest upside potential are Universal Display (OLED), STMicroelectronics (STM), Synopsys (SNPS), Microchip Technology (MCHP), and NXP Semiconductors (NXPI).
Its five holdings with the greatest downside potential are Micron (MU), Intel (INTC), Applied Materials (AMAT), Lam Research (LRCX), and Marvell Technology (MRVL).
Revealingly, SMH’s ETF Smart Score is Eight, implying that this ETF is likely to outperform the market.
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