How is SMH stock faring? The VanEck Semiconductor ETF has lost 3.8% over the past five trading sessions but has earned about 42% 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 major developments in the AI industry.
Shares of semiconductor and AI companies are falling today following the news that billionaire investor Peter Thiel sold off his fund’s entire holdings in Nvidia (NVDA) during Q3, citing growing fears of an overinflated “AI bubble.” Thiel also trimmed the fund’s position in Tesla (TSLA) stock by 76%.
Additionally, investors are growing increasingly concerned about the Federal Reserve’s next interest rate decision, following the historic U.S. government shutdown that ended last week.
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 $399.45 implies an upside of nearly 17%.
Currently, SMH’s five holdings with the highest upside potential are Universal Display (OLED), Synopsys (SNPS), STMicroelectronics (STM), 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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