VanEck Fabless Semiconductor ETF (SMHX) is rated a Buy due to its top holdings' strong positions across AI infrastructure, supporting robust revenue and free cash flow growth. The ETF's concentrated portfolio, with over 45% in NVIDIA, Broadcom, and AMD, benefits from diversification within AI, allowing exposure to multiple growth areas. Despite high valuations and low current yield, expected capital appreciation and dividend growth from strong cash flows outweigh concerns. Risks include data center energy use and infrastructure limits, but AI demand and reinvestment capacity position SMHX to outperform the broader market over time.
Nvidia is projected to generate approximately $851 billion in annual net income by 2029 if its earnings per share grow at a compounded rate of 64%, far surpassing Saudi Aramco's record profit of $161 billion in 2022. This growth would place Nvidia's ...
Nvidia's latest AI chips deliver significantly higher performance than China's best, Huawei's Ascend 910C, which is less than half as powerful as Nvidia's three-year-old H200 chip. Nvidia has since advanced through multiple chip generations, with its...
This week saw major AI companies like Anthropic, OpenAI, Meta, and Google release significant updates to their AI models, intensifying competition in the fast-evolving AI market. Nvidia announced a $12.9 billion acquisition of open-source AI platform...
The stock market remains range-bound with the S&P 500 just 1% below its all-time highs, supported by dip buyers. Energy stocks and AI-related companies are outperforming due to rising crude prices and strong semiconductor demand. Investors are shifti...
The August jobs report showed stronger-than-expected job growth with 162,000 jobs added and unemployment steady at 4.1%, easing concerns about labor market weakness. This shifts the Federal Open Market Committee's (FOMC) attention fully to inflation ...
