This Chip ETF Just Pulled Off a Historic 2026 While Nvidia Stumbled

The VanEck Semiconductor ETF (NASDAQ: SMH) has posted a 45% gain year to date in 2026 while Nvidia—its best-known holding—has lagged with an 11.04% YTD return, according to the analysis. The piece links Nvidia’s softer performance to factors including the China H20 overhang and a valuation reset, even as the company reported 85.23% revenue growth in Q1 FY27. SMH’s strength is attributed to a broader set of beneficiaries: Micron rose 158% YTD on DRAM and HBM shortages, AMD climbed 102% on a Meta MI450 win, and Intel gained 115% following CEO Lip-Bu Tan’s revenue-growth update. The article also says SMH tracks the MVIS US Listed Semiconductor 25 Index with quarterly rebalancing and a per-position weight cap that trims oversized holdings.