VanEck Semiconductor ETF Sees Positive Performance and Fund Flows

VanEck Semiconductor ETF ( $SMH ) has risen by 3.80% in the past week. It has experienced a 5-day net inflow of $1.33 million.
This is due, in part, to market sentiment on some of the ETF’s largest holdings. For example:

• Nvidia Corporation has been making headlines with its strategic investments and geopolitical developments. The company increased its stake in CoreWeave, a cloud-computing provider, to 7%, boosting CoreWeave’s stock price significantly. Nvidia’s shares also rose following a new deal to export AI chips to the Middle East, further solidifying its position in the AI chip market. Despite some concerns over trade restrictions with China, Nvidia’s stock is rated as a Strong Buy by analysts, with a promising upside potential.
• Taiwan Semiconductor Manufacturing Company Limited (TSMC) continues to demonstrate strong financial performance, declaring a quarterly cash dividend and receiving a Strong Buy consensus from analysts. The company is expanding its global footprint, providing advanced semiconductor solutions across various industries. Recent strategic appointments and financial transparency reinforce TSMC’s leadership in the semiconductor market, despite facing sector-specific challenges.
• Broadcom Inc. is in the spotlight due to its potential sale of VeloCloud, a networking business unit, to Arista Networks. This move aligns with Broadcom’s strategy to focus on core operations while capitalizing on the growing demand for SD-WAN technology. Broadcom’s stock saw a slight increase alongside other semiconductor companies, reflecting positive market sentiment amid easing trade tensions between the U.S. and China.