VanEck Semiconductor ETF Sees Strong Performance and Fund Flows

VanEck Semiconductor ETF ( $SMH ) has risen by 3.88% in the past week. It has experienced a 5-day net inflow of $133.14 million.
This is due, in part, to market sentiment on some of the ETF’s largest holdings. For example:

• Nvidia Corporation has been making waves in the GPU market, securing an impressive 92% market share in the first quarter, largely due to the success of its RTX 50 series. Despite facing challenges like U.S. export restrictions and competition from Chinese companies, Nvidia remains the preferred choice for major Chinese tech firms, thanks to its robust CUDA software ecosystem. Analysts maintain a strong buy consensus, with a projected 21% upside. However, Nvidia’s potential re-entry into China’s AI data center market with a new B40 chip is pending U.S. government approval, highlighting the company’s ongoing navigation of geopolitical hurdles.
• Taiwan Semiconductor Manufacturing Company Limited (TSMC) is positioned for robust growth, with analysts maintaining a buy rating and a price target of $220. TSMC’s strong market position and technological leadership are expected to drive long-term value, especially with increasing demand for AI-related technologies. The company is expanding globally, with significant investments in the U.S. and Europe, and is exploring opportunities in the Middle East. Despite geopolitical risks, TSMC’s proactive global expansion and R&D investments are expected to sustain its growth trajectory, making it a cornerstone of the global tech ecosystem.
• Broadcom Inc. continues to garner strong buy ratings from analysts, with a focus on its growth in AI and networking hardware. Despite a slight dip in share price due to high expectations, Broadcom’s AI-related revenue is projected to jump 60% this year, indicating strong demand in the sector. Analysts have set price targets ranging from $280 to $340, reflecting confidence in Broadcom’s strategic positioning and growth prospects. The company’s role in AI infrastructure complements the demand for Nvidia’s products, underscoring the interconnected growth within the semiconductor industry.