VanEck Semiconductor ETF Rises 47% YTD Amid AI-Driven Semiconductor Boom
The VanEck Semiconductor ETF (SMH) has surged approximately 47% year-to-date, fueled by bullish sentiment around semiconductor stocks. The ETF tracks the MVIS US Listed Semiconductor 25 Index, which has drawn significant attention due to breakthroughs in artificial intelligence.
Market momentum stalled recently as growth stocks, including semiconductor and AI equities, faced pressure from investor caution over interest rate uncertainty. The U.S. government's reopening after a brief shutdown failed to fully alleviate concerns about Federal Reserve policy, triggering partial profit-taking in tech sectors.
Analysts maintain a Moderate Buy rating on SMH, with a consensus price target of $390.54 suggesting 12% upside potential. Key holdings like Universal Display and Synopsys show particularly strong growth prospects.
