VanEck Semiconductor ETF ( $SMH ) has risen by 3.98% in the past week. It has experienced a 5-day net outflow of $263.5 million.
This is due, in part, to market sentiment on some of the ETF’s largest holdings. For example:
- Nvidia Corporation has been navigating a challenging landscape marked by geopolitical tensions and technological advancements. Despite a 15% drop in stock value this year, Nvidia remains a strong player with a market cap of $2.8 trillion. The company is making significant strides in AI and quantum computing, with Oracle Cloud Infrastructure deploying its Blackwell GPUs and a new R&D center planned in Boston. Financially, Nvidia reported a 78% revenue increase for fiscal Q4 2025, driven by a 93% growth in its data center segment. Amidst U.S. export restrictions, Nvidia is redesigning its AI chips for the Chinese market, maintaining its business while complying with regulations. Analysts rate Nvidia as a Strong Buy, with a potential 44% upside, highlighting its strategic initiatives and robust financial performance.
- Taiwan Semiconductor Manufacturing Company Limited has seen a 9.72% rise in its stock price, fueled by strategic expansions and positive market sentiment. The company’s construction of a third chip plant in Arizona is a key factor, expected to create 6,000 jobs and align with the U.S. push for semiconductor self-reliance. This move not only strengthens the domestic chip supply chain but also enhances national security. TSMC’s strong ties with tech giants like Apple and Nvidia, alongside rising capital expenditures on AI tools, have bolstered investor confidence. Analysts maintain a strong buy consensus on TSMC stock, reflecting its robust market position and growth prospects.
- Broadcom Inc. has faced a 17% decline in stock value this year due to demand fears amid potential economic slowdown. However, analysts remain confident in Broadcom’s growth potential, driven by AI-induced demand. The company’s Q1 results showed a 77% increase in AI revenue, with expectations of further growth. Broadcom’s $69 billion acquisition of VMware is set to strengthen its software business and expand its presence in data center and cloud infrastructure. Despite macro uncertainties, Broadcom’s diversified portfolio and pricing power are expected to offset tariff headwinds, with analysts maintaining a Strong Buy consensus and a 27% upside potential.