VanEck Semiconductor ETF Faces Outflows Despite Strong Holdings Performance

VanEck Semiconductor ETF ($SMH) has risen 6.30% in the past week, despite a 5-day net outflow of $617.05 million. Market sentiment on Nvidia, TSMC, and Broadcom, its largest holdings, is driving the ETF's performance. Nvidia has made a strategic acquisition in AI, while TSMC has reported strong financial results. Broadcom has received an upgrade and has a strong buy consensus with a price target suggesting further upside potential.

Title: VanEck Semiconductor ETF ($SMH) Performance: Nvidia, TSMC, and Broadcom Drive ETF Performance

The VanEck Semiconductor ETF ($SMH) has seen a 6.30% increase in the past week, despite a 5-day net outflow of $617.05 million. This performance is largely driven by market sentiment on the ETF's largest holdings: Nvidia, TSMC, and Broadcom. Each of these companies has shown significant developments that are contributing to the ETF's positive trajectory.

Nvidia (NVDA) briefly reached a new intraday high on Thursday, with its stock climbing around 2.8% during mid-day trading, reaching $139.51 per share [2]. This surge was likely influenced by the strong financial results reported by its Taiwanese chipmaking partner, Taiwan Semiconductor Manufacturing Company (TSM), which beat earnings expectations [2]. TSMC reported revenue of NT$759.69 billion, or $23.5 billion, for the quarter ended September 30, with a 36% year-over-year increase in U.S. dollars and a 54.2% increase in net income [2]. These results highlight the robust demand for AI chips and the strategic importance of TSMC in Nvidia's supply chain.

Meanwhile, Broadcom (AVGO) received an upgrade from HSBC, which raised its price target to $400 from $240 and changed its rating to Buy from Hold [1]. The upgrade was driven by stronger visibility into Broadcom's ASIC pipeline and diminishing risks tied to its wireless and VMware segments. HSBC expects Broadcom's ASIC revenue to reach $28.4 billion in FY26 and $42.8 billion in FY27, significantly above market expectations [1]. This upgrade reflects the growing demand for custom silicon from hyperscalers and the potential for Broadcom to capture a significant portion of this market.

These developments have contributed to the positive performance of the VanEck Semiconductor ETF ($SMH), which has seen a 6.30% increase despite a net outflow of $617.05 million over the past five days. The ETF's performance is a reflection of the strong fundamentals and market sentiment surrounding its largest holdings.

References
[1] https://www.investing.com/news/stock-market-news/5-big-analyst-ai-moves-microsoft-amazon-tesla-pt-hikes-amd-broadcom-upgraded-4115822
[2] https://qz.com/nvidia-stock-record-ai-chip-demand-tsmc-earnings-1851675302