VanEck Semiconductor ETF

SMH

Market cap $36.9B

The ROBO Global Artificial Intelligence ETF (THNQ) holds Nvidia at just 2.25% of assets while overweighting the chipmaker's competitors, positioning the fund as a hedge against concentration risk that plagues many other popular AI ETFs.

The AI boom is driving demand for semiconductors. Buying an exchange-traded fund (ETF) can lower your risk compared to buying individual stocks.

Investing in AI infrastructure is a sound strategy to capitalize on long-term AI growth. The VanEck Semiconductor ETF holds 25 of the biggest chip companies in the U.S.

As data center investment is set to surge and surpass oil spending, you may invest in ETFs like SMH as AI demand reshapes the digital economy.

Top semiconductor ETFs like the Direxion Daily Semiconductor Bull 3x Shares (SOXL), VanEck Semiconductor (SMH), and iShares Semiconductor (SOXX) rebounded in the extended hours after the strong Nvidia earnings and guidance.  SOXL jumped by over 8% in extended hours, while SMH and SOXX rose by 2.8% and 2.70%, respectively.

Industrial and infrastructure stocks may soon share the spotlight with the artificial intelligence trade.

Despite this supposition, investors should never seek to own just one stock. An exchange-traded fund (ETF) allows investors to own a single investment at a much lower risk.

It's been a good year for growth investors. While volatility has taken an upward turn in the past week, with good earnings seemingly no longer able to cause sustained upside moves, there's reason to be concerned that valuations have crept too high.

This past week Wall Street saw another tech rout, as AI valuation concerns dominant earnings calls. This overdue tech reckoning may be daunting to investors that have grown accustomed to parabolic stock moves.

While Monday's rally came partially off investor hopes of the government reopening, @verifiedinvesting's Gareth Soloway believes the catalyst will be a bull trap. He argues the economy "has only gotten worse.