VanEck Semiconductor ETF

SMH

Market cap $34.8B

Semiconductor shares rebounded sharply on Monday, recovering from Friday's steep selloff, after OpenAI and Broadcom announced a new artificial intelligence chip partnership and tensions between the US and China appeared to ease. The VanEck Semiconductor ETF jumped nearly 4%, while Nvidia and Advanced Micro Devices each climbed more than 3%.

Chip stocks bounced as OpenAI announced another computing deal with a major chipmaker and U.S.-China tensions eased. President Donald Trump said to not worry about China in a post to Truth Social over the weekend and it “will all be fine,” quelling some market fears.

Tariff fears have returned to markets just as stocks passed the six-month mark from April's "Liberation Day" bottom. In this article, I look back to find the highest performing stocks since the big April correction and pull out the top five that still have Strong Quant Buy ratings. Each of these top five Strong Buy Quant stocks delivered exceptional six-month gains, supported by robust earnings growth, sector leadership, and healthy financials.

The VanEck Semiconductor ETF has outperformed major indices, driven by surging data center CapEx and AI-driven semiconductor demand. SMH offers concentrated exposure to leading semiconductor companies like NVDA and TSM, benefiting from the ongoing AI and data center buildout cycle. Despite risks from lack of diversification and geopolitical tensions, the accelerating CapEx by tech giants supports continued bullish momentum for SMH.

SMH has been well buoyed by the ongoing AI boom, the billion-dollar investments, and the insatiable demand for AI chips/SaaS across numerous monetization layers. This is especially since the market has seemingly priced in an outsized Q3'25 performance for most of the ETF's holdings as we enter a new earnings season. While market developments and the cash inflows into the semiconductor sector have been extremely promising, it goes without saying that SMH and its top three holdings are looking rather stretched.

On October 7, 2025, Moulton Wealth Management, Inc disclosed a new position in VanEck Semiconductor ETF (SMH 2.70%), acquiring 8,932 shares valued at approximately $2.92 million.

AI hyperscaler capex is set to nearly triple to $1.4T by 2027, fueling a multi-year demand wave for semiconductors and infrastructure. Top AI ETFs - SMH, XSD, SOXX, WTAI and SMHX - offer diversified or targeted exposure to leading beneficiaries of the AI infrastructure buildout. All five highlighted ETFs earn Buy Quant ratings, with strong momentum, low expenses, and high liquidity, making them attractive for both short- and long-term investors.

On Monday, TruWealth Advisors disclosed the sale of 93,960 shares of the VanEck Semiconductor ETF (SMH -0.70%) during the third quarter.

Semis were headed for a tepid Q3 2025, but a strong September propelled Q3 2025 higher to ensure momentum is on their side at the start of Q4 2025. A number of developments in the latter part of Q3 2025 gave semis a boost, but how they play out in the long term remains to be determined.

The VanEck Semiconductor ETF remains a Buy as semiconductor demand surges, with inventory levels dropping and sales outpacing supply. SMH's evolving portfolio increases exposure to equipment makers and memory chip companies, benefiting from broadening AI infrastructure investment. Despite AI bubble concerns, SMH trades at an attractive ~26x earnings multiple, supported by robust long-term earnings growth prospects.