VanEck Semiconductor ETF Surges on AI Chip Momentum

VanEck Semiconductor ETF ( $SMH ) has risen by 10.33% in the past week. It has experienced a 5-day net inflow of $1.57 billion.
This is due, in part, to market sentiment on some of the ETF’s largest holdings. For example:

• Nvidia Corporation remains at the heart of the AI trade, but sentiment is turning more divided. “Big Short” investor Michael Burry has increased his long‑dated put positions, arguing Nvidia’s valuation looks overheated after its huge rally, even as the company cements supply of critical photonics through a $2 billion investment and multibillion‑dollar purchase deal with Lumentum that locks in key components through 2028.
• Taiwan Semiconductor Manufacturing Company Limited enjoyed a sharp share‑price jump as investors cheered blockbuster Q1 2026 revenue, up about 35% year on year, and a wave of bullish analyst upgrades, including a street‑high $600 target from Aletheia Capital. TSMC is accelerating spending on advanced nodes and 3D‑stacking, planning over $200 billion of capex in coming years as AI and high‑performance computing demand drive expectations for 30%‑plus annual growth and mid‑60% gross margins.
• Broadcom Inc. continued to shine as an AI infrastructure play, with the stock more than doubling over 12 months and analysts still seeing sizable upside thanks to long‑term custom‑chip and networking deals with Google and Anthropic that could add around $12 billion in revenue from 2027. Even after a downgrade from Seaport Global on valuation and concerns about capital intensity, Wall Street maintains a Strong Buy stance, viewing Broadcom’s central role in AI data‑center networking and custom ASICs as a durable earnings engine.