VanEck Semiconductor (SMH) Stock Surges 53% Since January
Stocks in the semiconductor sector are rising fast this year, including overlooked chip stock VanEck Semiconductor.
Quick overview
- Chip stocks are driving the stock market to record highs, with VanEck Semiconductor (SMH) gaining over 50% this year.
- VanEck Semiconductor has surged nearly 150% in the past year, benefiting from the booming chip market in 2025 and 2026.
- Despite recent gains, SMH stock experienced a decline of 2.88% after reaching around $600 per share.
- Investors should monitor upcoming earnings reports from key players like Micron Technology and Broadcom to gauge future market movements.
Chip stocks are leading the stock market to record highs, and investors may be overlooking VanEck Semiconductor (SMH), which gained more than 50% this year so far.
VanEck Semiconductor climbed close to 150% over the last 12 months, with about a third of those gains taking place since January. The stock has grown quickly as the chip market exploded in 2025 and 2026, and it may surprise investors to know that chip stocks outside of Nvidia have been consistent, strong performers.
The AI supercycle continued this week after a setback on Friday. Stock shares of major semiconductor and AI-related stocks surged Monday and early Tuesday, although many of them pulled back by the closing bell Tuesday. That includes SMH stock, which fell 2.88% and slipped from its position around $600 per share.
Market Signals Point Toward Semiconductor Gains
Investors should look at several signals to determine where the semiconductor market and AI stocks are headed. Micron Technology (MU) is one of the leaders in these sectors, and their upcoming quarterly report will be crucial to interpreting movement in the market.
Broadcom (AVGO) recently released earnings for the last quarter and impressed with $22.2 billion in revenue. Their stock fell 7%, however, as the company failed to meet exceedingly lofty expectations during what many analysts are calling an AI market bubble.
VanEck faces similar but not quite as inflated expectations. The company may see its stock heavily impacted by capex spending from other AI-focused companies. As Meta Platforms, Alphabet, Amazon, and Microsoft lay out their capital expenditure guidance for the rest of the year, VanEck and other smaller semiconductor companies may suffer from investors pulling back from the sector. Tight profit margins due to exceptional capital expenditures are keeping stock growth in check for the AI sector.
SMH stock mostly grew through the last four weeks but then tapered off and began a slow decline since early June. The fund utilizes a modified equal-weight construction, making it a complicated stock for investors to track. This method sets caps on weights and prevents single names from taking over the portfolio and hurting the value of smaller names.
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