A semiconductor ETF had its worst week since 2020. Here’s what’s next

[Pelican Press 0]

This is the hidden content, please

• Sign In
• or
• Sign Up

A semiconductor ETF had its worst week since 2020. Here’s what’s next

This is the hidden content, please

• Sign In
• or
• Sign Up

for ‘strong’ growth next year.” AVGO 5D mountain Broadcom fell more than 10% on Friday after its quarterly report. Of course, it’s possible for some chip stocks to rebound even as a broad sector fund like the SMH — comprised of 26 stocks — struggles. VanEck itself launched a somewhat narrower version of the fund — the VanEck Fabless Semiconductor ETF (SMHX) , with 22 stocks — last month. The “fabless” fund is focused on companies that design chips but are not themselves major manufacturers. Nick Frasse, associate product manager at VanEck, said the idea for the new fund came from studying Nvidia which, togetrh with Broadcom, accounts for one-thid of the new fund’s portfolio. The VanEck team decided that Nvidia’s asset-light business model was key to its success, and the new ETF is designed to capture companies with similar structures that, in theory, have the flexibility to focus more on innovation. “When we looked at just kind of the long-term opportunity set, it seemed like fabless were going to be the names that were the long-term winners in the AI space,” Frasse said. This summer sell-off, however, is hitting all types of semiconductors. SMHX, too, was down more than 12% last week. Looking ahead, investors will likely get updates from several chipmakers next week at the Goldman Sachs Communacopia + Technology Conference. Executives from many of the largest semiconductor companies are scheduled to speak at the conference, including the CEOs of Nvidia and Advanced Micro Devices . — With reporting contributed by CNBC’s Gina Francolla

This is the hidden content, please

• Sign In
• or
• Sign Up

#semiconductor #ETF #worst #week #Heres #whats

This is the hidden content, please

• Sign In
• or
• Sign Up

This is the hidden content, please

• Sign In
• or
• Sign Up