Investors seeking momentum may have VanEck Semiconductor ETF (SMH - Free Report) on radar now. The fund recently hit a new 52-week high. Shares of SMH are up approximately 81% from their 52-week low of $116.39/share.
But could there be more gains ahead for this ETF? Let’s take a look at the fund and the near-term outlook to get a better idea of where it might be headed.
SMH In Focus
The underlying MVIS US Listed Semiconductor 25 Index tracks the overall performance of companies involved in semiconductor production and equipment. The top three holdings of the fund are Nvidia (18.37%), Taiwan Semiconductor Manufacturing (12.56%) and Broadcom (7.28%). The fund charges 35 bps in fees.
Why The Move?
The semiconductor giant Nvidia exceeded Wall Street's fourth-quarter earnings and revenue expectations on Wednesday. This announcement not only showcased Nvidia's robust position in the AI chip market but also signaled promising prospects for the semiconductor industry in 2025 and beyond. The earnings release has spread optimism across the board in AI and semiconductor stocks.
Nvidia’s blockbuster earnings is a testament to the increasing demand for its graphics processing units (GPUs), propelled by the AI revolution. The company's GPUs, pivotal for running AI applications like OpenAI's ChatGPT, have become indispensable in powering large language models that deliver human-like interactions.
More Gains Ahead?
The Zacks Rank #1 (strong Buy) fund has a positive weighted alpha of 83.50. So, there is a decent outlook ahead for those who want to ride this surging ETF a shade further.
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Investors seeking momentum may have VanEck Semiconductor ETF (SMH - Free Report) on radar now. The fund recently hit a new 52-week high. Shares of SMH are up approximately 81% from their 52-week low of $116.39/share.
But could there be more gains ahead for this ETF? Let’s take a look at the fund and the near-term outlook to get a better idea of where it might be headed.
SMH In Focus
The underlying MVIS US Listed Semiconductor 25 Index tracks the overall performance of companies involved in semiconductor production and equipment. The top three holdings of the fund are Nvidia (18.37%), Taiwan Semiconductor Manufacturing (12.56%) and Broadcom (7.28%). The fund charges 35 bps in fees.
Why The Move?
The semiconductor giant Nvidia exceeded Wall Street's fourth-quarter earnings and revenue expectations on Wednesday. This announcement not only showcased Nvidia's robust position in the AI chip market but also signaled promising prospects for the semiconductor industry in 2025 and beyond. The earnings release has spread optimism across the board in AI and semiconductor stocks.
Nvidia’s blockbuster earnings is a testament to the increasing demand for its graphics processing units (GPUs), propelled by the AI revolution. The company's GPUs, pivotal for running AI applications like OpenAI's ChatGPT, have become indispensable in powering large language models that deliver human-like interactions.
More Gains Ahead?
The Zacks Rank #1 (strong Buy) fund has a positive weighted alpha of 83.50. So, there is a decent outlook ahead for those who want to ride this surging ETF a shade further.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
Get it free >>
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