Investor confidence in chipmakers surges in 2026, with a record number of fund managers betting on the sector amid rising AI demand.
Investor enthusiasm for semiconductors has become one of the clearest themes in the market, with Bank of America’s latest Global Fund Manager Survey showing that 82% of respondents now view a long position in global chipmakers as the most crowded trade. That was up from 73% in May and close to 80% in June, underlining how quickly conviction has built around the sector as the second half of 2026 gets under way.
By comparison, sentiment towards the “Long Magnificent 7” trade has faded sharply, with just 7% of managers choosing it as the most crowded position. Long US dollar exposure and short European equities were far less prominent, at 4% and 3% respectively. The shift points to a market increasingly focused on semiconductor demand rather than the broader technology names that dominated earlier in the year.
One of the most closely watched ways to play that trade is the VanEck Semiconductor ETF, better known as SMH. According to VanEck, the fund tracks the MVIS US Listed Semiconductor 25 Index and holds the largest and most liquid names in the industry. Its biggest positions include Nvidia, Taiwan Semiconductor Manufacturing and Broadcom, making it heavily exposed to the companies most central to the AI and chip manufacturing boom.
VanEck said the fund’s net asset value stood at $619.66 on June 24, 2026, with total net assets of $71.60 billion and an expense ratio of 0.35%. Other market data places its market capitalisation at roughly $70.7 billion to $73 billion, depending on the source and timing of the snapshot.
GuruFocus gave SMH a GF Score of 88 out of 100, with particularly strong marks for profitability and growth, each rated at 9 out of 10. Its financial strength score was listed at 7.7 out of 10. The ETF was also shown trading on a price-to-earnings ratio of 15.59 times, while no insider buying or selling activity was reported over the previous 12 months.
For investors, the message is straightforward: semiconductors remain a crowded but still favoured bet, backed by strong performance, deep liquidity and continuing exposure to the artificial intelligence supply chain.
- https://www.gurufocus.com/news/8958144/semiconductor-trade-dominates-investor-sentiment-in-july-2026 – Please view link – unable to able to access data
- https://www.gurufocus.com/news/8958144/semiconductor-trade-dominates-investor-sentiment-in-july-2026 – An article from GuruFocus discusses the dominance of semiconductor trades in investor sentiment as of July 2026. It highlights that 82% of investors prefer long positions in global semiconductors, a significant increase from previous months. The VanEck Vectors Semiconductor ETF (SMH) is mentioned as a key player in this sector, with a market cap of approximately $73 billion and a GF Score™ of 88/100, indicating strong performance across key financial metrics. The article also notes that SMH’s current P/E ratio is 15.59x, suggesting reasonable pricing relative to its earnings potential. Additionally, there has been no insider buying or selling activity reported for SMH in the past 12 months, indicating stable insider sentiment towards the ETF.
- https://www.vaneck.com/us/en/investments/semiconductor-etf-smh/ – The VanEck Semiconductor ETF (SMH) is an exchange-traded fund that tracks the MVIS US Listed Semiconductor 25 Index, focusing on the largest and most liquid semiconductor companies. As of June 24, 2026, the fund’s Net Asset Value (NAV) is $619.66, with total net assets of $71.60 billion. The fund has a total expense ratio of 0.35%. Its top holdings include NVIDIA Corporation (19.01%), Taiwan Semiconductor Manufacturing Company Limited (9.40%), and Broadcom Inc. (5.61%). The fund’s performance metrics indicate strong growth and profitability within the semiconductor sector.
- https://companiesmarketcap.com/vaneck-semiconductor-etf/marketcap/ – This page provides information on the market capitalization of the VanEck Semiconductor ETF (SMH). As of July 2026, SMH has a market cap of $70.68 billion USD. The page also offers historical data on the fund’s market cap, allowing users to track its performance over time.
- https://www.marketbeat.com/stocks/NASDAQ/SMH/chart/ – MarketBeat provides a chart and price history for the VanEck Semiconductor ETF (SMH) as of July 15, 2026. The chart shows the fund’s performance over various time frames, including 5-day, 1-month, 3-month, and year-to-date periods. The page also includes historical stock price data, opening and closing prices, volume, and market capitalization, offering a comprehensive view of SMH’s market performance.
- https://www.kiplinger.com/investing/etfs/best-semiconductor-etfs – Kiplinger examines the best semiconductor exchange-traded funds (ETFs) to invest in amid the AI-driven demand surge in the chip industry. The article categorizes semiconductor companies into several types: designers (e.g., Nvidia, AMD), fabricators (e.g., TSMC, Intel), memory producers (e.g., Micron), and equipment makers (e.g., ASML). It highlights the VanEck Semiconductor ETF (SMH) as the largest by assets, market-cap-weighted, and heavily exposed to Nvidia. The article also discusses other semiconductor ETFs, providing insights into their holdings and performance.
- https://www.youtube.com/watch?v=1Ul2eeBPvS8 – A YouTube video titled ‘SMH VanEck Vectors Semiconductor ETF: 5 Price Signals + Tuesday Predicted Opening Price – Surge?’ provides an analysis and price prediction for the VanEck Vectors Semiconductor ETF (SMH). The video discusses recent market movements, price signals, and forecasts the opening price for the following Tuesday, offering insights into potential trends and investment considerations for SMH.
Noah Fact Check Pro
The draft above was created using the information available at the time the story first
emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed
below. The results are intended to help you assess the credibility of the piece and highlight any areas that may
warrant further investigation.
Freshness check
Score:
8
Notes:
The article references Bank of America’s June 2026 Global Fund Manager Survey, indicating recent data. However, the earliest known publication date of similar content is June 16, 2026, suggesting the narrative has been in circulation for approximately a month. This raises concerns about the freshness of the information. Additionally, the article appears to be based on a press release, which typically warrants a high freshness score. Nevertheless, the recycled nature of the content and the time elapsed since the original publication necessitate a reduced score.
Quotes check
Score:
7
Notes:
The article includes specific figures and statements, such as ‘82% of respondents now view a long position in global chipmakers as the most crowded trade.’ However, these quotes cannot be independently verified through the provided sources. The lack of direct attribution to original sources and the inability to confirm the earliest known usage of these quotes raise concerns about their authenticity and originality.
Source reliability
Score:
6
Notes:
The article originates from GuruFocus, a niche financial news platform. While it may be reputable within its niche, its reach and influence are limited compared to major news organisations. The reliance on a press release as the primary source further diminishes the independence and reliability of the information presented.
Plausibility check
Score:
7
Notes:
The claims made in the article, such as the dominance of semiconductor trades in investor sentiment and the performance of the VanEck Semiconductor ETF, are plausible and align with industry trends. However, the lack of supporting detail from other reputable outlets and the inability to independently verify specific figures and statements raise concerns about the overall credibility of the narrative.
Overall assessment
Verdict (FAIL, OPEN, PASS): FAIL
Confidence (LOW, MEDIUM, HIGH): MEDIUM
Summary:
The article presents information that is plausible and aligns with industry trends. However, the reliance on a press release as the primary source, the inability to independently verify specific figures and statements, and the lack of supporting detail from other reputable outlets raise significant concerns about the credibility and reliability of the content. Given these issues, the article does not meet the necessary standards for publication under our editorial indemnity.