SMH Stock Recent News

SMH has outperformed the S&P 500, driven by AI infrastructure optimism and leadership from Nvidia, Broadcom, and TSMC. Geopolitical and trade uncertainties, especially around US-China relations and potential tariffs, remain significant risks for semiconductor stocks. AI infrastructure growth could broaden globally, but regulatory, supply chain, and CapEx digestion risks may temper near-term upside.

The U.S. stock market has kept investors on the edge in early 2025. Increasing geopolitical tensions, election-year jitters, and President Donald Trump's tariff policies created a shaky start for the year.

The Federal Reserve has been slow to make any rate cuts this year but forecasted two rate cuts by the end of the year.

Yields are drying up as rates are poised to move lower, but high-yield option trades remain interesting to us. SMH is a great candidate for selling put options. The underlying portfolio is high quality, and the fund has enough volatility to generate a significant yield. There are some risks, but we think selling $235 strike, September put options could yield meaningful cash, with a strong margin of safety.

The AI revolution and global chip demand make semiconductors a long-term growth story, with VanEck Semiconductor ETF offering diversified exposure to this booming sector. Massive CapEx from tech giants and geopolitical support like the CHIPS Act are fueling industry expansion, positioning SMH for strong future returns. Risks include sector concentration, geopolitical tensions, and potential CapEx slowdowns, but projected earnings growth for SMH's top holdings remains robust.

For SMH to maintain a CAGR performance similar to the last decade (>24%), there must also be a positive evolution in earnings expectations. Its structure helps: it's hyper-concentrated on the sector's core companies. For many, that's a risk, for me, it's potentially an alpha-driven feature. The fact remains: it trades at a premium, even with earnings expectations still at record highs in the info tech sector.

NEW YORK & MEXICO CITY--(BUSINESS WIRE)--VanEck announces strategic partnership for Casa de Bolsa Finamex to act as official liquidity provider for several VanEck ETFs cross-listed on the BMV.

The semiconductor sector has reported a massive reversal after the worst of the market-wide meltdown in April 2025 and the market's fears surrounding the potentially slowing AI spending cadence. With SMH's top three holdings delivering double beat performances and raised future guidance, it is unsurprising that the consensus have raised their forward estimates. On the other hand, it is apparent that their rallies may have occurred overly fast and furious, as observed in the ETF's expensive valuations compared to its peers.

Even a pullback to $4925+/-100 can still allow for a rally to $5700.

Brad Gerstner, Altimeter Capital Founder & CEO, joins CNBC's "Halftime Report" to discuss his AI strategy.