Chips Rebooted: SMH Surges On Trade Truce, Bullish Setup Signals More Upside

Summary

• VanEck Semiconductor ETF has surged 24% since early April, driven by positive momentum in the semiconductor sector and favorable U.S.-China trade developments.
• SMH offers concentrated exposure to 25 top U.S.-listed chip companies, with heavyweights Nvidia, TSM, and Broadcom comprising over 40% of the portfolio.
• Despite its recent gains, SMH trades at a high valuation of 35 times forward earnings, reflecting its growth potential but also limited margin for error.
• The 90-day U.S.-China tariff rollback presents a strong near-term catalyst, though the ETF's heavy tilt toward Nvidia and TSM adds volatility and speculative risk.

Mykola Pokhodzhay

The VanEck Semiconductor ETF (NASDAQ:SMH) has ebbed and flowed over the past several months, but since early April, it has mounted a strong comeback. After bottoming out early last month, the stock has surged over 24%, reigniting momentum across the subdued

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