VanEck Semiconductor ETF Sees Inflows Despite Flat Performance

VanEck Semiconductor ETF ( $SMH ) has fallen by 0.13% in the past week. It has experienced a 5-day net inflow of $1.64 billion.
This is due, in part, to market sentiment on some of the ETF’s largest holdings. For example:

• Nvidia Corporation remains the market’s key barometer for AI spending as it heads into Q4 FY26 results on February 25, with Wall Street looking for EPS of $1.52 and revenue of about $65.6 billion, up roughly 70% year over year. Investors are watching guidance on hyperscaler capex, China exposure, and the rollout of Blackwell and Rubin GPUs as analysts maintain a Strong Buy view and see about 37%–39% upside despite rich valuations.
• Taiwan Semiconductor Manufacturing Company Limited continues to rally, with the stock up strongly over the past year and analysts keeping a Strong Buy stance and targets around $410–$450, implying further upside. The bull case rests on its “execution moat” in leading‑edge N2 and upcoming A16 nodes plus scarce advanced packaging capacity that underpins AI demand, although heavy capex, rich valuation, and geopolitical risk mean some hedge funds are selectively trimming positions.
• Broadcom Inc. has delivered solid 12‑month gains and a Strong Buy consensus, with the Street targeting roughly mid‑30% upside as Q1 FY26 earnings on March 4 are expected to show about 29% revenue growth driven by AI TPUs and networking. Yet D.A. Davidson’s new Hold rating flags its AI ASIC franchise as vulnerable if hyperscalers pull more design in‑house, even as other analysts highlight durable networking strength and forecast AI revenue that could approach $60 billion in 2026.