VanEck Semiconductor ETF 2024 Holdings and Performance Summary
SMH ETF delivers stronger performance in Q1 – review top contributors, detractors and updated holdings data.
An overview of SMH’s performance for the first quarter of 2024
Van Eck Semiconductor Corporation Had a strong performance in the first quarter of 2024 vs The previous quarter, an increase of 28.9%. Performance was positive for most of the portfolio, with exposure to NVIDIA Corp. (NVDA) being the largest positive contributor during this quarter. Semiconductors continue to be the primary driver of technological innovation globally, whether complex systems on a chip or memory and core components; We believe this sector represents a long-term trend that investors should consider.
Daily collectibles as of 03/29/24
name | tape | Wallet weight % | Market value position | Involved |
Nvidia company | NVDA | 20.55 | 3,780,677,559 | 4,184,202 |
Taiwan Semiconductor Manufacturing Co., Ltd. ADR | TSM | 11.86 | 2,182,101,052 | 16,038,964 |
Broadcom Company | Afgo | 7.69 | 1,414,490,806 | 1,067,210 |
ASML Holdings NV ADR | ASML | 4.88 | 896,926,813 | 924,219 |
Texas Instruments Corporation | Texan | 4.60 | 846,429,598 | 4,858,674 |
Qualcomm company | QCom | 4.58 | 842,077,376 | 4,973,877 |
Intel Corporation | you are K | 4.50 | 828,682,690 | 18,761,211 |
Lam Research Company | LRCX | 4.49 | 826,317,370 | 850,497 |
Micron Technology Corporation | Mo | 4.41 | 811,880,019 | 6,886,759 |
Applied Materials Company | deaden | 4.41 | 811,682,715 | 3,935,813 |
Advanced Micro Devices Company | AMD | 4.32 | 795,076,679 | 4,405,101 |
Analog Devices Company | Addy | 3.59 | 659,592,465 | 3,334,812 |
Kosovo Liberation Army Company | KLAC | 3.45 | 635,282,352 | 909,404 |
Synopsys Corporation | Snaps | 3.22 | 593,309,012 | 1,038,161 |
Cadence Design Systems, Inc | CDNS | 2.99 | 549,266,945 | 1,764,543 |
NXP Semiconductor NV | Nxby | 2.01 | 370,674,822 | 1,496,044 |
Marvell Technology Company | MRVL | 1.75 | 322,695,022 | 4,552,695 |
Microchip Technology Company | MHP | 1.69 | 310,287,244 | 3,458,781 |
Stemicroelectronics NV ADR | STM | 1.25 | 229,676,957 | 5,311,678 |
Harmonious Energy Systems Company | MPWR | 1.02 | 186,961,146 | 275,990 |
On the semiconductor company | on | 0.91 | 168,065,648 | 2,285,053 |
Skyworks Solutions Company | Sox | 0.61 | 112,493,028 | 1,038,525 |
Teradine Company | Third | 0.54 | 99,354,939 | 880,572 |
Corfu company | QRVO | 0.39 | 70,962,184 | 617,976 |
International Display Company | OLED | 0.29 | 53,005,825 | 314,668 |
Source: Van Eyck. SMH Properties as of 03/29/2024. Collectibles may vary. Please visit vaneck.com/SMH For the fund’s most recent holdings. |
SMH Top Holdings
SMH’s largest shareholders in the first quarter of 2024
NVIDIA Company – Weight 20.54% | 16.35% contribution to the return
In the first quarter of 2024, NVIDIA reported earnings per share (EPS) of $5.98, a significant increase of 629% from the previous year. The company generated record total revenue of $26.0 billion, up 262% year over year and 18% sequentially. This impressive growth was primarily driven by the data center sector, which recorded record revenues of $22.6 billion, an increase of 427% from the previous year. The gaming segment also contributed revenue of $2.6 billion, representing an 18% year-over-year increase despite an 8% decline from the previous quarter.
Additionally, the Professional Visualization and Automotive segments generated revenues of $427 million and $329 million, respectively, with the latter showing notable year-over-year growth of 114%.
Looking ahead, NVIDIA expects revenue of approximately $11 billion for the next quarter, reflecting continued strong performance across its segments. CEO Jensen Huang highlighted the company’s focus on accelerated computing and generative AI as key drivers of future growth, in line with current industry trends.
Taiwan Semiconductor Manufacturing (TSM) – Weight 11.86% | 2.92% return contribution
In the first quarter of 2024, Taiwan Semiconductor Manufacturing Company (TSMC) reported strong financial performance. The company had earnings per share of $1.38, beating analyst estimates of $1.31. TSMC’s revenue for the quarter was $18.87 billion, beating expectations of $18.41 billion. This represents a slight improvement compared to the previous year’s revenue figures, indicating steady growth despite difficult market conditions.
The strong performance was primarily driven by production of advanced technology nodes and growing demand for high-performance computing and automotive applications. TSMC’s strategic investments in expanding its manufacturing capacity and technological advancements have positioned it well to capitalize on the growing demand for semiconductors globally.
TSMC provided upbeat guidance for the coming quarters, anticipating continued growth across its various business segments. The company remains focused on expanding its technology leadership and meeting the diverse needs of its global customer base.
SMH’s top critics in Q1 2024
Intel Corporation (INTC) – Weight 4.50% | -0.80% contribution to the return
In the first quarter of 2024, Intel reported earnings per share of $0.18 on revenue of $12.7 billion, up 9% year over year. However, Intel’s performance fell short of expectations due to a combination of factors, including a gross margin of 45.1%, which was slightly above guidance, and a large loss per share on a GAAP basis of $0.09.
Intel’s weak performance can be attributed to ongoing struggles in its compute and data center businesses, which have faced intense competition and a slower-than-expected recovery in demand. In addition, high capital expenditures for ongoing technological advancements and strategic investments, such as the Intel Foundry initiative, have significantly impacted profitability.
Looking ahead, Intel’s guidance for Q2 2024 includes revenue expectations between $12.5 billion and $13.5 billion, with a non-GAAP EPS estimate of $0.10, reflecting cautious optimism amid challenging market conditions.
ST Microelectronics (STM) – 1.25% wt -0.26% contribution to return
In the first quarter of 2024, STMicroelectronics reported net revenue of $3.47 billion and gross margin of 41.7%, both below expectations. On an annual basis, net revenues decreased by 18.4%, and net income decreased by 50.9% to $513 million. The decline was driven by weak performance in the automotive and industrial sectors despite gains in the personal electronics sector.
For Q2 2024, STMicroelectronics expects revenue of $3.2 billion, a 26% decline year over year. Full-year revenue forecasts were revised to $14-15 billion due to challenging market conditions and prolonged inventory corrections in the industrial sector. Despite these issues, the company is maintaining its $2.5 billion capital plan, focusing on strategic manufacturing initiatives.
Unified performance
Quarter-end returns as of 3/31/2024 | |||||||||
1 year | 5 years | 10 years | Since the beginning | Date created | Expense ratio (%) | ||||
Van Eck Semiconductor Corporation | Trait | Navigation | 71.94 | 34.64 | 27.21 | 26.27 | 12/20/2011 | Total | 0.35 |
MKT price | 72 | 34.64 | 27.21 | 26.24 | network | 0.35 |
Source: Van Eyck. VanEck Associates Corporation (“Adviser”) will pay all expenses of the Fund, excluding payment of fees under the Investment Management Agreement, acquired Fund fees and expenses, interest expense, offering costs, trading expenses, taxes, and extraordinary expenses. Notwithstanding the foregoing, the Adviser has agreed to pay the offering costs until at least February 1, 2025. “Other expenses” have been reworded to reflect the current fees. The performance data quoted represents past performance. Past performance is no guarantee of future results. The investment return and principal value of an investment will fluctuate so that the investor’s shares, when redeemed, will be worth more or less than their original cost. Performance may be lower or higher than the performance data quoted. Please call 800.826.2333 or visit vaneck.com for current performance as of the most recently completed month. The Fund’s “Net Asset Value” (NAV) is determined at the end of each business day, represents the dollar value of one share of the Fund, and is calculated by taking the Fund’s total assets, subtracting its total liabilities, and dividing it by the total number of shares outstanding. The NAV value is not necessarily the same as the ETF’s daily trading value. Investors should not expect to buy or sell shares at NAV. |
Disclosures
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Editor’s note: The summary points for this article were selected by Seeking Alpha editors.