SMH surged 56% year-to-date, driven by broad chip sector gains, while NVIDIA rose just 11% amid China restrictions and valuation concerns.
The VanEck Semiconductor ETF (NASDAQ:SMH) climbed 56% year-to-date, significantly outpacing NVIDIA (NASDAQ:NVDA), which rose only 11.04%. SMH’s quarterly rebalancing spread gains across the semiconductor ecosystem, reducing reliance on any single stock.
Micron Technology (NASDAQ:MU) soared 223% on HBM shortages, while AMD (NASDAQ:AMD) gained 144% after securing a major Meta contract. NVIDIA’s underperformance stemmed from China export restrictions and a valuation reset, despite reporting 85.23% revenue growth in Q1 FY27.
TSMC and ASML together account for nearly 17% of SMH’s holdings, exposing the fund to geopolitical risks like Taiwan Strait tensions. The ETF’s diversification has proven resilient amid NVIDIA’s struggles.