The VanEck Semiconductor ETF (SMH) is holding near $590 after a recent pullback, supported by strong earnings from major chip manufacturers signaling robust demand for AI-related semiconductors. As of July 15, 2026, the fund traded at $590.77, down 1.59% for the day but still up 65% year-to-date as the semiconductor sector benefits from accelerating artificial intelligence infrastructure investment.
TSMC, the world’s largest contract chip manufacturer and a major SMH holding, reported record second-quarter 2026 earnings on July 16 with revenue of approximately $39.6 billion, near the high end of its guidance. The company’s June revenue rose 67.9% year-over-year to NT$442.68 billion, driven by sustained demand for advanced AI chips. TSMC guided for full-year 2026 revenue growth of more than 30% in U.S. dollar terms, supported by continued investment in AI infrastructure.
SMH’s resilience reflects the broader semiconductor sector’s momentum. Multiple sources note that chip stocks surged 83% year-to-date through mid-July 2026 on soaring demand for AI chips. The ETF holds 26 semiconductor-related companies and manages approximately $72 billion in assets, making it the largest U.S.-listed semiconductor fund. Its holdings span chipmakers, equipment suppliers, and fabless design firms—all benefiting from the AI buildout.
Earnings reports from major semiconductor firms have anchored investor confidence. TSMC’s strong Q2 results, combined with positive guidance from other industry players, have provided support for the sector even as investors contend with high valuations and macro uncertainty. The semiconductor industry is projected to reach $1 trillion in revenue in 2026, according to industry forecasts, with AI chips driving much of that growth.
Chip stocks experienced a rocky start to July following inflation concerns, but the earnings results from TSMC and other major manufacturers have helped stabilize the sector. Analysts note that the durability of semiconductor growth will be tested as more earnings roll in, but the AI infrastructure supercycle remains the dominant theme supporting valuations across the space.
Sources
- Yahoo Finance — SMH price at $590.77 on July 15, 2026, and year-to-date performance data
- Investing.com — SMH trading at $590.77 with daily range and historical pricing
- Reuters — TSMC Q2 2026 record revenue and June sales growth of 67.9% year-over-year
- MarketBeat — TSMC Q2 2026 earnings announcement and EPS beat confirmation
- Seeking Alpha — TSMC Q2 revenue of $39.6 billion and AI infrastructure demand context
- US News Money — SMH as largest U.S.-listed semiconductor ETF with $72 billion in assets
- Schwab Network (Facebook) — SMH up 65% year-to-date through early July 2026
- TheStreet — SMH year-to-date return of 66.2% through early July
- Facebook (Reuters) — Semiconductor stocks up 83% year-to-date on AI chip demand
- VanEck — TSMC Q1 earnings guidance and impact on SMH holdings
