SMH Is Now Consolidating (Technical Analysis, Upgrade)
VanEck Semiconductor ETF's valuation has become more reasonable since my last writing due to price correction and profitability improvement. The ETF's P/E ratio has contracted to 39.2x (vs. 45x at my last writing), aligning more favorably with the broader tech sector's valuation. Technical trading patterns indicate a consolidation phase, reducing the risk profile compared to the previous overbought status.
Semiconductors (SMH) Bullish Trend Nears Pivotal Crossroads
For much of the past two years, the Semiconductors sector has lead the Nasdaq and S&P 500 higher. Lead by Nvidia, the Semiconductors have been a market force displaying strong leadership for tech stocks.
5 Reasons to Stay Bullish on Semiconductor Stocks
Semis are an integral part of the U.S. economy. Though chip stocks have stalled recently, forward growth remains strong, and several indicators suggest that higher prices are on the horizon.
SMH: A Textbook Buying Opportunity Has Arrived
VanEck Semiconductor ETF investors have benefited from the AI surge but faced slower-than-anticipated recovery opportunities in non-AI segments. Nvidia's upcoming earnings release is critical to underpinning the bullish momentum in SMH. Geopolitical tensions and Intel and Samsung's CapEx slowdowns pose structural headwinds for wafer fab equipment makers, impacting SMH.
VanEck Semiconductor ETF: In A Holding Pattern
I rate the VanEck Semiconductor ETF (SMH) as a Hold due to concentration risk, high valuation, and technical analysis suggesting near-term downside momentum. SMH has a high P/E ratio of 60x, indicating stretched valuations, making it a poor capital allocation choice at this time. Geopolitical risks, including potential tariffs and tighter controls on semiconductor exports, could negatively impact SMH's holdings and profitability.
Some Smaller Semiconductor Stocks Sport Appealing Valuations
Thanks to the remarkable ascent of Nvidia (NVDA) and big gains by other large-cap semiconductor stocks, including Broadcom (AVGO), many investors view the broader chip space as richly valued. They're not wrong.
Not Sure Which Chip or Artificial Intelligence (AI) Stock to Buy? Check Out This ETF Instead.
The VanEck Semiconductor ETF is a great way to invest in the chip sector.
This Is the Best-Performing ETF of the Last 10 Years. Is It Still a Buy?
Semiconductor stocks have been big winners, but this one has topped its peers.
Should You Invest in the VanEck Semiconductor ETF (SMH)?
Launched on 12/20/2011, the VanEck Semiconductor ETF (SMH) is a passively managed exchange traded fund designed to provide a broad exposure to the Technology - Semiconductors segment of the equity market.
Looking for a Simple and Safer Way to Invest in the Chip Industry? This ETF Could Be Your Best Option
This ETF has long outperformed the S&P 500.
SMH: More Of A Pullback Is Warranted Before It Is A Buy
SMH's painful pullback in July/ August 2024 has occurred as expected, with the ETF nearly losing a quarter of its value then. Even so, the durability of generative AI demand across AI accelerators/ SaaS remains undisputed - as similarly reported by numerous market leading players. With the stock market entering the Q3'24 season, readers may expect more volatility as AMD continues to be downgraded and NVDA faces tougher YoY comparisons.
Are Semiconductors (SMH) Sending a Warning to Tech Stocks?
The recent stock market rally has seen the S&P 500 Index and Dow Jones Industrial Average make new highs but not the Nasdaq Composite. By itself, this is somewhat worrisome for tech investors.
