The VanEck Semiconductor ETF (SMH) has outperformed both the S&P 500 and Nasdaq Composite for several years, making it an attractive option for investors wanting exposure to AI.
While the AI boom benefits multiple sectors, the semiconductor industry is critical as these companies provide the necessary hardware that supports AI applications.
The top holdings in SMH include major players in the tech sector that invest heavily in semiconductor technology to enhance their AI capabilities, making it a potentially lucrative investment.
Although SMH shows significant annualized returns, investors should remain cautious of inherent risks within the semiconductor sector that could affect future performance.
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