VanEck Semiconductor ETF Surges on Robust AI Chip Rally

VanEck Semiconductor ETF ( $SMH ) has risen by 8.22% in the past week. It has experienced a 5-day net inflow of $41.31 million.
This is due, in part, to market sentiment on some of the ETF’s largest holdings. For example:

• Nvidia Corporation stayed at the center of the AI rally, with shares around $177 after a 74% yearly gain and analysts split on valuation but not on growth. Wall Street still calls it a Strong Buy, with an average 12‑month target near $274 and some bullish forecasts as high as $380, backed by huge expected demand for its Hopper, Blackwell, and Rubin data‑center chips.
• Taiwan Semiconductor Manufacturing Company Limited climbed over 7% this week into the mid‑$330s as investors positioned ahead of its April 16 earnings, betting on booming AI chip orders and new capacity investments. Insider buying by director Ursula Burns and a series of Buy ratings with roughly 30% upside targets highlight confidence, even as rich valuations and heavy options hedging flag the risk of volatility.
• Broadcom Inc. drew mixed analyst signals: Erste Group’s Hans Engel downgraded it to Hold on worries over slower software growth and accounting headwinds, even as AI chip revenue and a strong Q2 outlook remain supportive. At the same time, Broadcom secured a $970 million U.S. defense cloud deal and announced a CFO transition for June 2026, while Street consensus still rates the stock a Strong Buy with around 50% upside.