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Barchart
Barchart
Ebube Jones

SMH vs. SMHX: Is VanEck's New Semiconductor ETF a Buy?

The semiconductor industry is poised for transformation, with global sales projected to reach $588 billion, marking double-digit growth from 2023 levels. While the semiconductor group is notoriously cyclical, the booming demand is particularly evident in Nvidia's (NVDA) explosive growth story, as the once-lowly maker of graphics chips for gaming has exploded into a dominant global force in artificial intelligence (AI) data center computing. 

In fact, Nvidia CEO Jensen Huang recently described demand for his company's latest AI chip as “insane," after declaring earlier this year that "Accelerated computing and generative AI have hit the tipping point. Demand is surging worldwide across companies, industries and nations."

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