SMH ETF surges 77% in 2026, driven by massive AI spending

The VanEck Semiconductor ETF (SMH) surged 77.13% during the first five months of 2026. This performance significantly outpaced the S&P 500’s 10.61% return over the same period. SMH serves as the underlying asset for the SMHD.BA CEDEAR.

Massive capital expenditures in the Artificial Intelligence (AI) sector fueled this growth. These investments boosted the entire semiconductor supply chain.

The rally spans the ETF's key holdings rather than a single company. Major contributors include NVIDIA, AMD, Broadcom, Micron, and Taiwan Semiconductor. Sustained demand for AI hardware continues to lift the entire sector.