SMH Stock Recent News

iShares Semiconductor ETF is up 13% year to date as the semi-industry is riding the strong fundamentals behind AI investments. The fund allocates AMD stock at the top spot with a higher position in analog semiconductor manufacturers. I believe that the SOXX ETF provides a 10% upside gap following the superior portfolio allocation.

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.

The final trades of the day with CNBC's Melissa Lee and the “Fast Money” traders.

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.