VanEck Semiconductor ETF Sees Significant Surge
The VanEck Semiconductor ETF (NASDAQ: SMH) rose by an impressive 18.2% in May, driven by increased momentum in artificial intelligence (AI) spending, according to data from S&P Global Market Intelligence. This rise is notable as ETFs typically prioritize stable sector-wide movement over high volatility.
Diverging Trends in Semiconductor Stocks
In May, a shift from graphics processing units (GPUs) to traditional central processing units (CPUs) was evident among major companies within the ETF. Companies like Intel and Qualcomm outperformed the sector’s GPU leader, Nvidia, as demand for CPUs surged due to their critical role in AI development.
Future Outlook
Intel CFO David Zinsner noted that in training scenarios, the ratio of GPUs to CPUs is decreasing, which indicates a growing necessity for CPUs in executing tasks effectively. The combination of heightened demand and existing supply constraints is propelling CPU stocks upward and contributing to the ETF’s robust performance.
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