SMH ETF News, 09/26/25

Semiconductor ETF Shakes Markets as Tech Sector Roars Back

Wall Street's favorite chip play delivers explosive returns while traditional finance scrambles to keep up.

Record-Breaking Performance

The SMH ETF surged 8.3% today—outpacing every major index and leaving bond traders wondering why they bother with 4% yields. Volume hit unprecedented levels as institutional money flooded into semiconductor exposure.

AI Demand Fuels Rally

NVIDIA and AMD lead the charge with data center revenues exploding 200% year-over-year. The chip shortage narrative flipped from crisis to profit engine as pricing power returned with vengeance.

Regulatory Hurdles Cleared

Recent FSA approvals cleared the path for expanded semiconductor investments—because nothing says innovation like government paperwork. The green light triggered a buying frenzy that pushed holdings to all-time highs.

Market Outlook: Chip Dominance Continues

Analysts project semiconductor revenues will double by 2027 as AI, IoT, and quantum computing demand accelerates. The SMH ETF now trades at 52-week highs—proving once again that while bankers debate spreads, engineers build the future.

Another day, another reminder that the real money isn't in predicting rates—it's in owning the picks and shovels of the digital gold rush.

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According to TipRanks’ unique ETF analyst consensus, which is based on a weighted average of analyst ratings on its holdings, SMH is a Strong Buy. The Street’s average price target of $345.64 implies an upside of 7.6%.

Currently, SMH’s five holdings with the highest upside potential are Universal Display (OLED), Micron (MU), Nvidia (NVDA), Microchip Technology (MCHP), and STMicroelectronics N.V. (STM).

Its five holdings with the greatest downside potential are Intel (INTC), Skyworks Solutions (SWKS), Teradyne (TER), Lam Research (LRCX), and Kla Corporation (KLAC).

Intel stock gained nearly 9% yesterday following reports that the chipmaker has approached iPhone Maker Apple (AAPL) for a new strategic investment.

Revealingly, SMH’s ETF Smart Score is Eight, implying that this ETF is likely to outperform the market.