VanEck Semiconductor ETF Sees Strong Performance and Inflows

VanEck Semiconductor ETF ( $SMH ) has risen by 1.70% in the past week. It has experienced a 5-day net inflow of $812.41 million.
This is due, in part, to market sentiment on some of the ETF’s largest holdings. For example:

• Nvidia Corporation is making significant strides in the financial markets with its ambitious venture into humanoid robotics, unveiling the AEON robot in collaboration with Hexagon. This move is expected to boost Nvidia’s robotics and automotive division significantly, potentially growing from $1.7 billion in Fiscal 2024 to $7.55 billion by the early 2030s. Despite earlier challenges due to U.S. export restrictions to China, Nvidia’s stock has rebounded, rising 19% year-to-date. Analysts remain optimistic, with a strong consensus of ‘Buy’ ratings, as Nvidia continues to innovate in AI and robotics, aiming to surpass its current market valuation of nearly $3.9 trillion.
• Taiwan Semiconductor Manufacturing Company Limited is adjusting its strategic plans by delaying the construction of a second plant in Japan and increasing its investment in U.S. expansion. This shift comes in response to potential tariffs from the Trump administration. Despite these challenges, TSMC maintains a ‘Strong Buy’ consensus among analysts, with a price target of $231.63. The company is also poised to benefit from a new U.S. policy that raises the investment tax credit for semiconductor manufacturers to 35%, which could significantly impact TSMC’s U.S. operations and overall growth strategy.
• Broadcom Inc. continues to capture investor interest as it reaches new all-time highs, driven by robust demand for its AI chips and a strong presence in next-generation technologies like 5G. The company’s AI semiconductor segment has shown impressive growth, with revenue increasing to $4.4 billion and expected to reach $5.1 billion in the next quarter. Despite concerns about its high valuation, Broadcom’s strategic positioning in AI and 5G markets, along with favorable macroeconomic developments, supports its ‘Strong Buy’ consensus rating. Analysts remain optimistic about Broadcom’s growth potential, with price targets reflecting further upside.