2024-02-14 00:46:34 ET
Summary
- SMH offers targeted exposure to a basket of chip stocks.
- The industry is benefiting from the strong demand for specialized AI chips to handle data-intensive computations.
- Nearly a quarter of the fund exposure is in shares of Nvidia Corporation, which adds a layer of risk given the high concentration.
The VanEck Semiconductor ETF ( SMH ) is at ground zero of the spectacular market rally in chip stocks benefiting from the artificial intelligence boom. The rise of generative AI and large language models has set off a wave of demand for the next generation of chips specialized to handle complex computations....
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SMH: Benefitting From Specialized AI Chips Demand, But Is Also At Risk