2024-06-22 01:20:57 ET
Summary
- The VanEck Semiconductor ETF has surged over 80% since June 2023, and it is time for some caution.
- The reason is that the market seems to be favoring chips at the expense of software, something which is illogical.
- Therefore, there could be a correction in the chip space to the benefit of application software plays.
- There are also potential risks in the AI PC market.
- Given the above risks, I have a hold position.
Since I covered the VanEck Semiconductor ETF ( SMH ) in June 2023 in my bullish piece entitled “SMH ETF: The Nvidia Effect And De-Risking of the Supply Chain”, it has surged by more than 80% and is now trading at nearly $268 as charted below....
Read the full article on Seeking Alpha
For further details see:
SMH: Risks Of Rotation Into Software And Doubts For AI PC (Rating Downgrade)