SMH: Growth Remains Intact Despite Near-Term AI Infrastructure Concerns
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Michael Del Monte6.22K FollowersFollow5ShareSavePlay(9min)CommentsSummaryVanEck Semiconductor ETF earns a Buy rating for a small 1-2% portfolio allocation due to sector growth prospects.SMH offers concentrated exposure to leading semiconductor names like NVDA, TSM, and AVGO, with the top 10 holdings comprising 75% of assets.I expect AI infrastructure investments and recent custom chip deals to drive robust sector growth into 2026, despite near-term volatility.Concentration risk is notable; SMH's limited diversification makes position sizing critical within broader portfolios. SweetBunFactory/iStock via Getty Images The VanEck Semiconductor ETF (SMH) is a passively managed exchange-traded fund designed to track the performance of the MVIS US Listed Semiconductor 25 Index. SMH is a highly concentrated strategy that provides exposure across theThis article was written byMichael Del Monte6.22K FollowersFollowMonte Independent Investment Research: Michael Del Monte is a buy-side equity analyst with expertise in the technology, energy, industrials, and materials sectors. Prior to working in the investment management industry, Michael spent over a decade in professional services working across industries that include O&G, OFS, Midstream, Industrials, Information Technology, EPC Services, and consumer discretionary.Analyst’s Disclosure:I/we have a beneficial long position in the shares of NVDA, ORCL, AVGO either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.