The VanEck Semiconductor ETF (SMH) is recommended as a Buy due to strong capital expenditure growth driven by AI investments and a recent sector price correction. SMH offers diversified exposure to leading semiconductor companies like NVIDIA, TSMC, AMD, and Broadcom, which benefit from hyperscaler AI spending. Despite a modest 0.35% expense ratio, SMH has delivered impressive returns, nearly 70% in 2026 and averaging 62% annually over three years. The outlook remains positive based on sustained AI returns and rising capex, though risks include potential efficiency gains in AI reducing chip demand or a capex plateau.
As of Oct 16, 2026 01:01 WIB, the VanEck Semiconductor ETF (SMH) trades at USD 554.00, down 1.90% for the day on Pluang. Nvidia (NVDA), a key holding in SMH, is priced at USD 217.68 with a 1.73% decline. Meanwhile, Taiwan Semiconductor (TSM) shows a 2.42% drop, trading at USD 419.58, reflecting some short-term pressure despite the positive AI-driven outlook.
The VanEck Semiconductor ETF (SMH) holds about 17.55% of its portfolio in NVIDIA, meaning nearly $88,000 of a $500,000 investment is tied to one company. This concentration is significant given the fund only holds 25 stocks, with the top five making ...
Jim Cramer declared the semiconductor trade "broken" as software stocks have outperformed chips since June 2026, with software ETFs up about 22% and chip ETFs down 11% in that period. However, over the longer term since January 2026, chip stocks have...
