VanEck Semiconductor ETF Jumps 30% in a Month as AI Bubble Fears Intensify

1 articles · Updated · 24/7 Wall St. · May 15

SMH has surged nearly 30% in a month and 55% year to date, a move the report says is fueling concern that parts of the AI chip trade are overheating.
That warning is aimed mainly at semiconductors rather than the broader market, with the report arguing a correction in high-flying chip names would not necessarily drag down other AI-linked stocks.
Meta is highlighted as a relative value play after its recent pullback pushed its forward P/E to about 19.5, even as the company plans up to $145 billion in capital spending tied to AI.
The broader takeaway is to favor cheaper AI beneficiaries such as select hyperscalers and some Magnificent Seven names over chasing parabolic semiconductor gains at current levels.

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