VanEck Semiconductor ETF

SMH

Market cap $72.8B

SOX may have completed its Elliott Wave correction, with bulls targeting new highs if key support holds, while breakout confirmation remains essential.

If you're interested in broad exposure to the Technology - Semiconductors segment of the equity market, look no further than the VanEck Semiconductor ETF (SMH), a passively managed exchange traded fund launched on December 20, 2011.

Big tech hyperscalers like Amazon, Alphabet, Microsoft, and Meta are positioned for significant free cash flow growth as CapEx investments begin to yield returns post-2028. Semiconductor and memory stocks have led the market, but expectations are now high, making risk-to-reward more attractive in hyperscalers and select software names.

SK Hynix stock slumped in its first full day of U.S. trading as jitters continued to weigh on chip and memory stocks.

AI optical market TAM is projected to grow at 35-40% CAGR over the next two years, driven by rapid adoption in AI data centers. Lumentum, Applied Optoelectronics, and Marvell Technologies are well-positioned AI optical stocks with attractive valuations and robust growth prospects. Lumentum and Applied Optoelectronics offer compelling forward revenue multiples (6x and 9x, respectively), with accelerating revenues and margin expansion supporting bullish outlooks.

Semiconductor equipment makers outperformed chip designers like Nvidia. Diversification within the semiconductor sector can reduce risk and capture sector trends, such as a shift toward inference and CPU spending.

Your feed is stuffed with NVIDIA takes. The most talked-about stock on Earth is up 13.25% year to date through July 10, 2026, and if you didn't own it, you probably feel like you missed the trade of the decade.

The SPDR S&P Semiconductor ETF (NYSEARCA:XSD) and the VanEck Semiconductor ETF (NASDAQ:SMH) both offer exposure to semiconductors, yet they are two very different bets.

The Vanguard Information Technology ETF (VGT) is the way to invest in the sector as a whole. The VanEck Semiconductor ETF (SMH) invests in the narrow sector niche driving the AI build-out.

Emily Roland, Co-Chief Investment Strategist at Manulife John Hancock Investment Management, delivered a two-sided message on CNBC this morning: the fundamentals underpinning technology stocks are the strongest she has ever seen, yet the concentration those returns have created is rewriting the risk profile of nearly every diversified portfolio.