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Semiconductor ETF SMH surges 77% in 5 months, driven by AI capex and strong sector demand.

Market News
07 Jun 2026
24/7 Wall Street
View Source
Bullish
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The VanEck Semiconductor ETF (SMH) has gained 77.13% in just over five months, far outpacing the S&P 500's 10.61% return year-to-date. This surge is driven by strong AI-related capital expenditures across the semiconductor supply chain, including chip design, foundry, memory, and equipment sectors. Key companies like AMD, Broadcom, Micron, Taiwan Semiconductor, NVIDIA, and ASML contribute to this broad-based rally. Continued growth depends on sustained hyperscaler capex, strong data center revenue, and increasing supply commitments, while valuation risks and potential demand slowdowns remain watch points.

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