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Semiconductor ETF (SMH) Hits New 52-Week High
VanEck Semiconductor ETF (SMH - Free Report) is probably on the radar for investors seeking momentum. The fund just hit a 52-week high and moved up 104% from its 52-week low price of $136.10/share.
Are more gains in store for this ETF? Let us take a quick look at the fund and the near-term outlook on it 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 product charges 35 bps in annual fees.
Why the Move?
On Tuesday, Nvidia (NVDA - Free Report) became the most valuable company in the world thanks to the ongoing AI boom. The chipmaker now has a market capitalization over $3.33 trillion. Nvidia first topped a $1 trillion market cap on June 13, 2023.
The stock advanced north of $2 trillion on March 1, and then rapidly crossed the $3 trillion mark for the first time on June 5. As Nvidia takes 27.75% of the fund SMH, the product has every reason to rally.
More Gains Ahead?
Currently, SMH has a Zacks ETF Rank #1 (Strong Buy). Also, it might continue its strong performance in the near term, with a positive weighted alpha of 102.65, which gives cues of a further rally.