VanEck Semiconductor ETF Sees Mixed Week Amid Market Shifts

VanEck Semiconductor ETF ( $SMH ) has risen by 2.76% in the past week. It has experienced a 5-day net outflow of $99.01 million.
This is due, in part, to market sentiment on some of the ETF’s largest holdings. For example:

• Nvidia Corporation has been in the spotlight as its CEO, Jensen Huang, reached a net worth comparable to Warren Buffett, driven by Nvidia’s success in the AI chip market. Despite selling some shares for tax planning and diversification, Huang remains heavily invested in the company. Nvidia’s stock is performing well, with analysts maintaining a ‘Strong Buy’ rating, reflecting confidence in its growth, especially in AI and GPU segments. However, Nvidia faces challenges with U.S. export restrictions, as lawmakers urge caution in dealings with Chinese companies.
• Taiwan Semiconductor Manufacturing Company Limited (TSMC) reported a strong second-quarter revenue, surpassing expectations due to high demand for AI chips from major clients like Nvidia. The company is expected to continue its growth trajectory into the second half of 2025, with analysts predicting a significant year-over-year earnings increase. TSMC’s stock has been on an upward trend, buoyed by its strategic global expansion and robust market position in the semiconductor industry.
• Broadcom Inc. has received positive attention from Goldman Sachs, which initiated a ‘Buy’ rating, citing its strong position in enterprise networking silicon and potential in custom AI chips for hyperscalers. Broadcom’s recent developments, including the launch of a new Ethernet switch, highlight its innovation in non-AI sectors as well. Analysts are optimistic about Broadcom’s future, with a consensus ‘Strong Buy’ rating and expectations of continued profitability and market share growth.