VanEck Semiconductor ETF (SMH) Rallies 48.7% in 2025
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1d ago
0mins
Source: Fool
- ETF Performance: The VanEck Semiconductor ETF (SMH) surged 48.7% in 2025, reflecting strong growth in the semiconductor sector driven by artificial intelligence, which has attracted increased investor interest in the sector's potential.
- Key Component Analysis: While Nvidia's annual gain was 38.9%, the ETF's overall performance benefited from Micron's 240.2% increase, highlighting the surge in memory demand and the ETF's market cap weighting strategy.
- Price Trend Forecast: DRAM prices are projected to rise over 50% this quarter, with NAND flash prices expected to increase by 30% to 40% quarter-over-quarter, further enhancing the profitability and investment appeal of the semiconductor industry.
- AI Infrastructure Boost: As AI infrastructure continues to expand, industry leaders widely predict that AI-related spending will keep growing over the next few years, potentially allowing the SMH to outperform the market again in 2026.
Analyst Views on AMD
Wall Street analysts forecast AMD stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for AMD is 281.78 USD with a low forecast of 200.00 USD and a high forecast of 350.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
37 Analyst Rating
27 Buy
10 Hold
0 Sell
Moderate Buy
Current: 207.690
Low
200.00
Averages
281.78
High
350.00
Current: 207.690
Low
200.00
Averages
281.78
High
350.00
About AMD
Advanced Micro Devices, Inc. is a global semiconductor company. The Company is focused on high-performance computing, graphics and visualization technologies. Its segments include Data Center, Client and Gaming, and Embedded. Data Center segment includes artificial intelligence (AI) accelerators, microprocessors (CPUs) for servers, graphics processing units (GPUs), accelerated processing units (APUs), data processing units (DPUs), Field Programmable Gate Arrays (FPGAs), smart network interface Cards (SmartNICs) and Adaptive system-on-Chip (SoC) products for data centers. Client and Gaming segment includes CPUs, APUs, chipsets for desktops and notebooks, discrete GPUs, and semi-custom SoC products and development services. Embedded segment includes embedded CPUs, GPUs, APUs, FPGAs, system on modules (SOMs), and Adaptive SoC products. It markets and sells its products under the AMD trademark. Its products include AMD EPYC, AMD Ryzen, AMD Ryzen PRO, Virtex UltraScale+, and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
