VanEck Semiconductor ETF Rises on Robust AI Flows

VanEck Semiconductor ETF ( $SMH ) has fallen by 1.58% in the past week. It has experienced a 5-day net inflow of $970.6 million.
This is due, in part, to market sentiment on some of the ETF’s largest holdings. For example:

• Nvidia Corporation spent the week in the spotlight as investors weighed blockbuster AI growth against rising risks. The company is preparing a new inference-focused processor to keep its AI edge, even as key customers like Amazon and Alphabet push their own chips, while analysts still see strong upside despite a sharp post-earnings sell-off and concerns about over-commitment to supply and possible AI bubble dynamics.
• Taiwan Semiconductor Manufacturing Company Limited saw heavy options trading as shares hovered around $375 after an 80% one-year rally, with investors digesting strong AI-driven capex plans and a rich valuation near 32x earnings. Confidence was reinforced by a fresh SEC 6-K filing and a clean Deloitte audit opinion on 2024–2025 results, underscoring solid financials and capital discipline as TSMC secures long-term capacity deals from customers such as Nvidia and Broadcom.
• Broadcom Inc heads into its March 4 fiscal Q1 report with Wall Street expecting roughly 29% revenue and 26% EPS growth, powered by demand for custom AI chips and networking gear. Management is guiding to AI chip sales doubling to about $8.2 billion this quarter and sees at least one million units of a new stacked AI chip shipping by 2027, supporting a Strong Buy rating and sizable upside targets even as investors watch software-integration risks after the VMware acquisition.