AICoin AI: Semiconductor ETF Dips as AI Bubble Fears Grow Amid Fed Uncertainty
The VanEck Semiconductor ETF (SMH) dropped 3.8% this week as Peter Thiel's Founders Fund exited its Nvidia position, fueling concerns about an AI market bubble. The fund also reduced Tesla holdings by 76% in Q3.
Market uncertainty persists with mixed signals on Federal Reserve rate policy following the U.S. government shutdown. Despite the pullback, SMH remains up 42% YTD, tracking 25 major chip stocks.
Analysts maintain a Moderate Buy rating on SMH with a $399.45 average price target (17% upside potential). Universal Display and Synopsys show strongest projected returns among constituents.