SMH Stock Recent News

More than three quarters of S&P 500 companies have already reported fourth quarter earnings, FactSet data shows, and this week Nvidia joined them. The release after market hours on Wednesday was highly anticipated, so here we are, talking about little else.

Regarding investment decisions, virtually all analysts will advise prospective shareholders not to hold just one stock.

Looking for broad exposure to the Technology - Semiconductors segment of the equity market? You should consider the VanEck Semiconductor ETF (SMH), a passively managed exchange traded fund launched on 12/20/2011.

SMH's sideways trading since June 2024 and the bullish support at the worst of the DeepSeek correction have been a boon indeed. This is because the robust multi-year AI spending trends are likely to trigger a break out in 2025, assuming that NVDA offers a promising FY2026 guidance. Otherwise, AVGO is likely to be a robust growth driver, thanks to the hyperscalers' increased demand for custom ASICs given the improved cost to performance ratio.

Semiconductors are crucial for AI, and VanEck Semiconductor ETF is a top performer with a 785% gain over the last decade. SMH's concentrated portfolio in NVDA, AVGO, and TSM drives its success, despite high valuations posing short-term risks. The semiconductor industry is projected to grow significantly, making SMH a strong long-term investment despite emerging competitors like DeepSeek.

Since my last writings, I now see a more favorable return/risk profile from both SOXX and SMH. The companies in both funds play a foundational role to our tech future and are some of the more innovative companies. Yet, both funds now trade at large valuation discounts from the broader tech sector.

Stacy Rasgon, Bernstein Research U.S. semiconductors senior analyst, joins 'Closing Bell' to discuss Advanced Micro ahead of its earnings and the tariffs impact on the chip trade.

Jeff deGraaf, Renaissance Macro Research, joins 'Closing Bell' to discuss market trends as investors navigate a choppy February.

By Angus Shillington, Deputy Portfolio Manager, and Nick Frasse, Associate Product Manager We unpack where we believe the semiconductor industry is headed, including the rise of hyperscalers, sectors poised to rebound, undervalued opportunities, and potential competitor pressures. The semiconductor industry is poised for another transformative year in 2025.

Semiconductor investors endured a rough week, as DeepSeek fears erupted on Monday, but the fallout seems to have been contained. Robust retail buying and solid market sentiments have helped to mitigate the selling pressure across the market. AI compute isn't going to fall off the cliff, as hyperscalers and big tech double down on their conviction.