VanEck Semiconductor ETF ( $SMH ) has fallen by 4.50% in the past week. It has experienced a 5-day net inflow of $1.48 billion.
This is due, in part, to market sentiment on some of the ETF’s largest holdings. For example:
- Nvidia Corporation is navigating a complex landscape as it seeks to deepen its business ties with China amidst increasing U.S. export restrictions. The company’s CEO, Jensen Huang, recently visited China to discuss trade and new chip designs, signaling Nvidia’s commitment to the Chinese market despite geopolitical tensions. Analysts have mixed views on Nvidia’s prospects, with some lowering price targets due to potential revenue impacts from export restrictions. However, Nvidia remains a strong player in the AI sector, and its stock still holds a strong buy consensus among analysts.
- Taiwan Semiconductor Manufacturing Company Limited (TSMC) has reported strong financial results for the first quarter of 2025, with significant year-over-year growth in revenue and net income. The company is focusing on advanced technologies, such as 3-nanometer and 5-nanometer processes, which continue to drive revenue. TSMC is also expanding its capacity in the U.S. with a $100 billion investment plan, despite some revenue declines due to smartphone seasonality and overseas expansion costs. Analysts maintain a positive outlook on TSMC, citing its leadership in the semiconductor industry and strong financial position.
- Broadcom Inc. has seen insider selling activity, with corporate insiders selling a significant amount of stock recently. Despite this, the company maintains a strong buy consensus among analysts, although there are concerns about potential sales impacts due to tariffs. Broadcom’s stock has declined over the past three months, but analysts remain optimistic about its long-term prospects, with a notable price target suggesting substantial upside potential.