AI-driven capital expenditure and strong earnings push the SMH ETF to new highs, led by key semiconductor stocks.
The SMH semiconductor ETF surged 8.8% in a single week, closing at a record $619.96 on June 12, 2026, as AI-related capital expenditure outpaced supply. The rally was fueled by strong earnings and demand for advanced chip packaging and data center solutions.
Lam Research (LRCX) reported record revenue of $5.84 billion, while Kulicke & Soffa (KLIC) soared 15% for the week and 149% year-to-date on AI packaging demand. Marvell Technology (MRVL) saw its revenue outlook raised for fiscal 2027 and 2028, with data center revenue now accounting for 76% of quarterly totals.
Kulicke & Soffa announced plans to increase fiscal-year capex from $12M to $22M to expand its Thermo-Compression Bonding systems, targeting $400M in annual sales. The sector’s momentum reflects broader market optimism around AI-driven growth.