Últimas noticias sobre VanEck Semiconductor ETF (NASDAQ:SMH)

VanEck Semiconductor ETF

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The Fund normally invests at least 80 percent of its total assets in securities that comprise the Funds benchmark index. The Semiconductor Index includes common stocks and depositary receipts of U.S. exchange-listed companies in the semiconductor industry. Such companies may include medium-capitalization companies and foreign companies that are listed on a U.S. exchange. To be initially eligible for the Semiconductor Index, companies must generate at least 50 percent of their revenues from semiconductors. Semiconductors include companies engaged primarily in the production of semiconductors and semiconductor equipment. Of the largest 50 stocks in the semiconductor industry by full market capitalization, the top 25 by free-float market capitalization (i.e., includes only shares that are readily available for trading in the market) and three month average daily trading volume are included in the Semiconductor Index. 

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Taiwan Semiconductor avanza en la fabricación en EE.UU. gracias a la ley CHIPS y subsidios, con nuevas plantas en Arizona y visión global.

Taiwan Semiconductor: ¿Cómo afecta la ley CHIPS y los subsidios de EE.UU. a su liderazgo global?

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Donald Trump asume la presidencia y surgen dudas sobre las regulaciones de semiconductores. Nvidia sube un 138% en 12 meses.

Donald Trump, Nvidia y la IA: Impacto en las regulaciones tecnológicas

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Taiwan Semiconductor crece 38,8% en ingresos gracias a demanda de chips avanzados de IA. Proyecciones 2025 sorprenden.

Resultados récord de Taiwan Semiconductor (TSM) impulsan acciones: proyecciones de ingresos destacan para 2025

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<a target="_blank" href="https://www.benzinga.com/topic/tsmc" rel="noreferrer noopener">Contract chipmaker</a> Taiwan Semiconductor Manufacturing Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TSM#NYSE">TSM</a>) expressed conviction in the Donald Trump administration&#8217;s commitment to bolstering the country&#8217;s semiconductor position by funding the construction of chipmaker facilities under the CHIPS Act.
Previously, Trump had <a target="_blank" href="https://www.benzinga.com/25/01/42784508/taiwan-semiconductors-2nm-progress-fuels-taiwan-index-musk-highlights-talent-pool" rel="noreferrer noopener">verbally attacked Taiwan</a> for not having a defense treaty with the U.S. and for allegedly undermining his country&#8217;s chip industry. He also expressed his disapproval of the CHIPS Act.
Taiwan Semiconductor CFO Wendell Huang <a target="_blank" href="https://www.cnbc.com/2025/01/19/tsmc-confident-in-continued-chips-act-funding-under-trump-says-cfo.html" rel="noreferrer noopener">told</a> CNBC the U.S. chip subsidies will likely continue under Trump as the fabrication plants pass construction and production milestones.&nbsp;
Also Read: <a href="https://www.benzinga.com/25/01/43065734/western-digital-poised-for-long-term-growth-despite-short-term-nand-pressures-analysts-say" target="_blank" rel="noreferrer noopener">Western Digital Faces &#8216;Challenging Pricing Environment,&#8217; But There&#8217;s Long-Term Potential: Analysts</a>
The chipmaker told CNBC that it had bagged $1.5 billion in subsidies from the U.S.
Taiwan Semiconductor&#8217;s Huang told CNBC that its first fabrication plant in Arizona started producing advanced chips in the fourth quarter of 2024 after&nbsp;production delays.&nbsp;He said that the construction of two plants in Arizona&nbsp;was on track, with the second likely&nbsp;operational in 2028.
Taiwan Semiconductor&#8217;s&nbsp;investment in its three Arizona projects is worth over $65 billion.
However, industry experts have told CNBC that they expect Trump to keep the policy intact&nbsp;due to its bipartisan support in Washington.&nbsp;
Last week, Taiwan Semiconductor chief C.C. Wei <a target="_blank" href="https://www.benzinga.com/25/01/43053982/taiwan-semiconductor-chief-calls-us-semiconductor-sanctions-manageable-to-skip-trump-inauguration" rel="noreferrer noopener">dismissed concerns over</a> U.S. semiconductor sanctions, calling them &#8220;manageable.&#8221; He also flagged the company&#8217;s focus on advanced packaging and stated that non-AI sectors like automotive and crypto-mining remain unaffected by sanctions.
Taiwan Semiconductor reported&nbsp;fourth-quarter revenue&nbsp;growth of 38.8%, reaching $26.88 billion, topping the analyst estimate of $26.28 billion.
The gross margins expanded by 600 bps to 59% as its 3-nm and 5-nm technologies gained traction.
It expects first-quarter 2025 revenue of $25.0 billion—$25.8 billion, in line with the&nbsp;$24.97 billion analyst consensus and a gross margin of 57%—59%. The company committed $38 billion—$42 billion to fiscal 2025 capex versus actual capex of $29.8 billion a year ago.&nbsp;
Taiwan Semiconductor stock surged over 87% in the last 12 months.
Investors can gain exposure to companies&#8217; stocks engaged in the manufacturing of semiconductors through VanEck Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SMH#NASDAQ">SMH</a>) and iShares Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SOXX#NASDAQ">SOXX</a>).
Price Action:&nbsp;TSM stock traded higher by 0.93% to $213.47 premarket at the last check on Tuesday.
Also Read:
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<li><a href="https://www.benzinga.com/media/25/01/43038361/nvidia-continues-strong-demand-for-taiwan-semiconductors-advanced-packaging-despite-technology-shifts" target="_blank" rel="noreferrer noopener">Nvidia Continues Strong Demand for Taiwan Semiconductor&#8217;s Advanced Packaging Despite Technology Shifts</a></li>
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Taiwan Semiconductor Touts $1.5 Billion In US Subsidies, Confident Trump Will Maintain CHIPS Act Backing

President-elect Donald Trump is preparing to take charge on Monday. His tenure has triggered concerns about forthcoming <a target="_blank" href="https://www.benzinga.com/news/large-cap/25/01/43025761/ai-chip-stocks-gain-momentum-on-taiwan-semiconductor-performance-bidens-semiconductor-sanctions-kick-in" rel="noreferrer noopener">semiconductor rules and regulations</a>, including fears of possible tariffs on Mexico and China.
Recently, Nvidia Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) CEO Jensen Huang criticized the Biden administration&#8217;s latest AI technology regulations against countries like China and Russia.
Nvidia chief&nbsp;Jensen Huang&nbsp;will likely miss the inauguration of Trump&nbsp;on January 20 due to his routine East Asia&nbsp;tour at this time of the year, rendering him unable to attend any prior inauguration ever, Bloomberg <a target="_blank" href="https://www.bloomberg.com/news/articles/2025-01-16/nvidia-ceo-will-miss-trump-inauguration-unlike-many-tech-peers?srnd=phx-technology&amp;sref=TBDibEcD" rel="noreferrer noopener">cites</a> unnamed sources familiar with the matter.
Big Tech giant leaders, including Apple Inc&#8217;s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>)&nbsp;Tim Cook,&nbsp;Amazon.com Inc&#8217;s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>), and Tesla Inc&#8217;s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>)&nbsp;Elon Musk, will grace the occasion next week.
Huang also told Bloomberg he expected Trump to bring less regulation.
Also, on Thursday, Nvidia <a target="_blank" href="https://www.benzinga.com/topic/nvidia" rel="noreferrer noopener">launched three new</a> NIM microservices to help enterprises bring additional control and safety measures to their AI agents.
The offerings are part of &nbsp;Nvidia NeMo Guardrails, an open-source collection of software tools and microservices designed to help companies improve <a target="_blank" href="https://blogs.nvidia.com/blog/nemo-guardrails-nim-microservices/#:~:text=NVIDIA%20has%20introduced%20three%20new,responses%20align%20with%20ethical%20standards." rel="noreferrer noopener">their AI applications</a>.
NeMo Guardrails helps developers integrate and manage AI guardrails in large language model (LLM) applications.
Also Read: <a target="_blank" href="https://www.benzinga.com/25/01/42980720/microsoft-taps-meta-veteran-to-lead-new-coreai-division-plans-shift-from-openai-dependence" rel="noreferrer noopener">Microsoft Launches CoreAI Division: Ex-Meta Exec To Supercharge Copilot And AI Innovations</a>
Amdocs, Cerence AI, and Lowe&#8217;s leveraged NeMo Guardrails to safeguard AI applications.
By being deployed in customer service across the automotive, finance, healthcare, manufacturing, and retail industries, the agents can boost customer satisfaction and trust.
Nvidia stock surged over 138% in the last 12 months. Investors can gain exposure to the stock through Fidelity MSCI Information Technology Index ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FTEC#NYSE">FTEC</a>) and VanEck Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SMH#NASDAQ">SMH</a>).
Price Action: NVDA stock is up 2.40% at $136.91 at the last check on Friday.
Also Read:
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<li><a href="https://www.benzinga.com/25/01/43053982/taiwan-semiconductor-chief-calls-us-semiconductor-sanctions-manageable-to-skip-trump-inauguration" target="_blank" rel="noreferrer noopener">Taiwan Semi Chief To Skip Trump Inauguration, Calls US Semiconductor Sanctions &#8216;Manageable&#8217;</a></li>
</ul>
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Nvidia Unveils AI Safety Tools to Boost Enterprise Trust; CEO Jensen To Miss Trump Inauguration

<a target="_blank" href="https://www.benzinga.com/topic/semiconductors" rel="noreferrer noopener">Contract chipmaker</a> Taiwan Semiconductor Manufacturing Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TSM#NYSE">TSM</a>) chief C.C. Wei opted to maintain a low profile by skipping President-elect&nbsp;Donald Trump&#8217;s inauguration, including donations to the Trump camp, Bloomberg reports.
The inaugural committee raised over <a target="_blank" href="https://www.benzinga.com/markets/equities/25/01/42938119/lockheed-martin-donates-1m-to-trumps-inaugural-committee-as-speculation-grows-over-elon-musk-led-doge-crackdown-on-traditional-defense-contracts" rel="noreferrer noopener">$170 million for January events</a>, thanks to donors including&nbsp;Meta Platforms Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>),&nbsp;Microsoft Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>),&nbsp;Amazon.com Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>),&nbsp;Alphabet Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>) (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>) Google, and&nbsp;Apple Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>).
Big Tech giant leaders, including Apple&#8217;s Tim Cook, Amazon&#8217;s Jeff Bezos, and Tesla Inc&#8217;s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>) Elon Musk will attend the inauguration on January 20.
Also Read: <a target="_blank" href="https://www.benzinga.com/analyst-ratings/price-target/25/01/43038644/citi-cheap-valuation-investment-banking-and-trading-outlook-paired-with-accelerating-buybacks-sparks-optimism-analyst" rel="noreferrer noopener">Citi Outperforms Analyst Expectations With 12% Revenue Growth, Confirms $20 Billion Buyback Plan</a>
Reuters reports that Wei blamed the crisis of skilled workers, supply chain gaps, and inadequate chip plant construction regulations for delaying the construction of its Arizona project.
Wei added that Taiwan Semiconductor&#8217;s U.S. plant is unlikely to procure the most advanced chip technology before factories in Taiwan due to compliance issues, construction, and other regulations.
Wei told Reuters that building the new Arizona factory took at least twice as long as in Taiwan due to the complex regulations that made it challenging to employ the chipmaker&#8217;s latest technology in the U.S. before Taiwan.
Previously, Taiwan Semiconductor stated most of its chip manufacturing would remain in Taiwan, especially for the most advanced chips.
Trump had called out Taiwan during <a target="_blank" href="https://www.benzinga.com/government/24/10/41604100/trump-goes-after-taiwan-semiconductor-on-joe-rogan-podcast" rel="noreferrer noopener">his presidential campaigns</a> for allegedly&nbsp;sabotaging America&#8217;s chip industry. He verbally attacked the U.S. CHIPS Act and pledged to slap tariffs on Taiwanese chips. He had also flagged the lack of a formal defense treaty between the U.S. and Taiwan.
Additionally, before handing over the charge to the Trump government, the Biden administration launched another round of <a target="_blank" href="https://www.benzinga.com/government/regulations/25/01/42897081/nvidia-and-ai-chip-stocks-brace-for-impact-as-biden-administration-considers-new-china-export-ban-report" rel="noreferrer noopener">artificial intelligence technology sanctions</a> on countries, including China and Russia, to restrict their warfare capabilities.
China has been a key semiconductor market for companies like Taiwan Semiconductor. Washington aims to maintain its semiconductor position dominance and share control with its allies, including Taiwan, the Netherlands (home to ASML Holding (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/asml#NASDAQ">ASML</a>)), and South Korea (home to Samsung Electronics (OTC: <a class="ticker" href="https://www.benzinga.com/stock/ssnlf#OTC">SSNLF</a>)).
Wei told Bloomberg that he found the semiconductor sanctions &#8220;manageable&#8221; and does not expect them to affect chips for non-AI sectors such as cars and crypto-mining.
On Thursday, Taiwan Semiconductor reported <a target="_blank" href="https://www.benzinga.com/news/earnings/25/01/43022654/taiwan-semiconductor-q4-earnings-3nm-and-5nm-nodes-lead-topline-growth-expands-margins-issues-strong-q1-outlook" rel="noreferrer noopener">fourth-quarter revenue</a> of $26.88 billion (NT$868.46 billion), up 38.8%, topping the consensus estimate of $26.28 billion.
As its 3-nm and 5-nm technologies gained traction, the chipmaker&#8217;s gross margins expanded by 600 bps to 59%.
It expects first-quarter 2025 revenue of $25.0 billion—$25.8 billion versus the&nbsp;$24.97 billion consensus. It projects a gross margin of 57%—59%. Taiwan Semiconductor committed $38 billion—$42 billion to fiscal 2025 capex versus actual capex of $29.8 billion a year ago.&nbsp;
During the earnings call, Wei expressed conviction in producing chips of the same quality in Arizona as in Taiwan with a smooth ramp-up process.
Taiwan Semiconductor stock surged 109% in the last 12 months.
Investors can gain exposure to companies engaged in the manufacturing of semiconductors through VanEck Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SMH#NASDAQ">SMH</a>)
and iShares Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SOXX#NASDAQ">SOXX</a>).
Price Action:&nbsp;TSM stock traded higher by 0.20% to $215.21 premarket at the last check on Friday.
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<li><a href="https://www.benzinga.com/news/earnings/25/01/43026092/bank-of-america-q4-earnings-6-7-billion-profit-1-7-billion-in-investment-banking-fees-forecasts-higher-nii-in-2025" target="_blank" rel="noreferrer noopener">Bank of America Q4 Earnings: $6.7 Billion Profit, $1.7 Billion In Investment Banking Fees</a></li>
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Taiwan Semi Chief To Skip Trump Inauguration, Calls US Semiconductor Sanctions 'Manageable'

The U.S. <a href="https://www.benzinga.com/topic/semiconductors">semiconductor </a>sector is going through nail-biting times as further <a href="https://www.benzinga.com/government/regulations/25/01/42897081/nvidia-and-ai-chip-stocks-brace-for-impact-as-biden-administration-considers-new-china-export-ban-report">potential sanctions on the export of artificial intelligence chips</a> to China loom.
What Happened: Nvidia (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) was recently left with a bitter taste after its big tech customers <a href="https://www.benzinga.com/25/01/42970112/nvidia-order-delays-and-ai-sanctions-threaten-global-sales-offer-growth-opportunity-for-us-tech-giants">deferred billions of dollars in orders</a>.
As geopolitics shakes up the industry, investors are monitoring the ramifications for exchange-traded funds, or ETFs, tied to the sector. Here are three such ETFs, among many others, that are caught in the crosshairs:
<ul>
<li>VanEck Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SMH#NASDAQ">SMH</a>): This ETF&#8217;s top holdings include Nvidia, Broadcom (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AVGO#NASDAQ">AVGO</a>), Taiwan Semiconductor Manufacturing Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TSM#NYSE">TSM</a>) and Advanced Micro Devices (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMD#NASDAQ">AMD</a>). Each company is deeply involved in AI chip production and data center infrastructure. This makes the ETF particularly vulnerable to regulatory changes in this space.</li>
</ul>
<ul>
<li>iShares Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SOXX#NASDAQ">SOXX</a>): This ETF boasts holdings in Nvidia, Intel (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/INTC#NASDAQ">INTC</a>), and Broadcom. Potential export restrictions could disrupt these companies' revenue streams, naturally causing ripples in the ETF's performance.</li>
</ul>
<ul>
<li>SPDR S&amp;P Semiconductor ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XSD#NYSE">XSD</a>): This ETF has an equal-weighted structure that diversifies the exposure across semiconductor firms. Its significant allocations in Nvidia, AMD, and Micron Technology (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MU#NASDAQ">MU</a>) make it vulnerable to export restrictions.</li>
</ul>
Also Read: <a href="https://www.benzinga.com/news/25/01/43013412/whats-going-on-with-marvell-technology-mrvl-stock">What&#8217;s Going On With Marvell Technology (MRVL) Stock?</a> 
<h3 class="wp-block-heading">Nvidia Faces Double Whammy</h3>
The Biden administration is reportedly considering a new set of sanctions over the next few days. According to a Bloomberg report, the new sanctions may include a three-tier framework targeting AI chip exports, aiming to curb China's access to advanced technology. These restrictions could take effect before Donald Trump assumes office on Jan. 20.
Nvidia, a sector heavyweight, faces a double whammy. In addition to the potential export restrictions, Nvidia's hyperscaler customers — Microsoft (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>), Amazon&#8217;s (NADAQ: AMZN) AWS, Alphabet (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>), and Meta (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>) — recently postponed $10 billion worth of orders for its Blackwell GB200 data center racks due to overheating issues. This disruption adds to the challenges Nvidia faces, as up to 50% of its chips may be destined for markets that could fall under the new export rules, according to D.A. Davidson&#8217;s Gil Luria, as reported by Reuters.
According to Defiance ETFs CEO Sylvia Jablonski, &#8220;Geopolitical tensions, particularly between the U.S. and China, have significantly impacted the semiconductor industry. Each time we've heard a report about a potential US ban on semiconductors from the White House we've seen NVDA and all other semiconductor stocks fall.&#8221;
<h3 class="wp-block-heading">Long-Term Outlook For ETFs</h3>
While the short-term outlook for semiconductor ETFs remains uncertain, the long-term prospects offer significant opportunities. AI, quantum computing and other technological advancements are expected to drive substantial demand for advanced semiconductors. Despite geopolitical headwinds, semiconductor-focused ETFs could benefit from the ongoing innovation and market growth.
Summing up the sector's potential, Jablonski said: "Any kind of high tech, innovative trend has its risks and rewards. Investors should understand that innovation takes time, and that price action is often volatile proceeding it. However, if the innovations like AI, Quantum computing come to fruition, the opportunities for investors are endless!"
Read Next: 
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Nvidia Suffers $10 Billion Setback, AI Chip Sanctions Spell Trouble For 3 ETFs

On Thursday, Taiwan Semiconductor Manufacturing Co&#8217;s (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TSM#NYSE">TSM</a>) fourth-quarter results beat forecasts, fueled by demand for advanced processor node technologies for artificial intelligence applications.
The contract chipmaker, which supplies chips for&nbsp;Nvidia Corp&#8217;s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) graphics processing unit&nbsp;(GPU)&nbsp;and Apple, Inc&#8217;s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>) smartphones, guided first-quarter revenue <a target="_blank" href="https://investor.tsmc.com/english/quarterly-results/2024/q4" rel="noreferrer noopener">above the consensus</a>.
Taiwan Semiconductor reported fourth-quarter revenue of $26.88 billion (NT$868.46 billion), up 38.8% year-over-year, topping the analyst consensus estimate of $26.28 billion.
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Net income and earnings per share were NT$374.68 billion and NT$14.45 per share ($2.24) versus <a target="_blank" href="https://www.benzinga.com/calendars/earnings" rel="noreferrer noopener">analyst consensus of $2.23</a>.
In dollar terms, revenue growth was 37.0% year over year and 14.4% quarter over quarter. <a target="_blank" href="https://www.benzinga.com/news/earnings/24/10/41373163/nvidia-supplier-tsmc-reports-q3-revenue-earnings-beat-amid-rising-demand-for-ai-chips" rel="noreferrer noopener">The top-line performance</a> aligned with the company&#8217;s guidance of $26.1 billion—$26.9 billion.
Taiwan Semiconductor said its business was supported by demand for its 3-nm and 5-nm technologies. However, it expects smartphone seasonality to impact the first quarter, partially offset by continued growth in AI-related demand.
The company said 3-nm accounted for 26% of the total revenue, 5-nm accounted for 34%, and 7-nm technologies accounted for 14%. 7-nm and more advanced technologies comprised 74% of the total wafer revenue.
Margin Profile:&nbsp;Taiwan Semiconductor&#8217;s AI technology moat helped it expand its fourth-quarter gross margins by 600 bps to 59%, as its 3-nm and 5-nm chips gain traction at the cost of&nbsp;Intel Corp&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/INTC#NASDAQ">INTC</a>) and&nbsp;Samsung Electronics&nbsp;(OTC:<a class="ticker" href="https://www.benzinga.com/stock/SSNLF#OTC">SSNLF</a>),&nbsp;<a target="_blank" href="https://www.benzinga.com/25/01/42825523/taiwan-semi-likely-for-upside-backed-by-ai-demand-and-advanced-node-pricing-analyst-says" rel="noreferrer noopener">which struggled to transition</a>&nbsp;into advanced nodes. Taiwan Semiconductor&#8217;s operating margin expanded by 740 bps to 49%.
Outlook: Taiwan Semiconductor is guided for first-quarter 2025 revenue of $25.0 billion-$25.8 billion versus the <a target="_blank" href="https://www.benzinga.com/calendars/guidance" rel="noreferrer noopener">$24.97 billion consensus estimate</a>. It expects a gross margin of 57%—59% and operating profit margins of 46.5%—48.5%.
The company earmarked fiscal 2025 capex worth $38 billion-$42 billion (versus $29.8 billion a year ago) amid intensifying geopolitical tensions between the U.S. and China, with the former eying tougher <a target="_blank" href="https://www.benzinga.com/25/01/43003008/taiwan-semi-samsung-intel-may-face-stricter-us-rules-on-chip-exports-to-china-over-security-concerns" rel="noreferrer noopener">artificial intelligence technology</a> restrictions on the latter, citing national security concerns.
Taiwan Semiconductor stock surged over 103% in the last 12 months.
Investors can gain exposure to semiconductor manufacturing stocks through the VanEck Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SMH#NASDAQ">SMH</a>) and the iShares Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SOXX#NASDAQ">SOXX</a>).
Price Action: TSM stock traded higher by 4.86% at $216.85 premarket at the last check on Thursday.
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Photo by wakamatsu.h via Shutterstock

Taiwan Semiconductor Q4 Earnings: 3nm and 5nm Nodes Lead Topline Growth, Expands Margins, Issues Strong Q1 Outlook

Marvell Technology Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MRVL#NASDAQ">MRVL</a>) shares are trading higher by 0.99% to $116.35 during Wednesday&#8217;s session amid the broader market&#8217;s positive reaction to <a href="https://www.benzinga.com/economics/macro-economic-events/25/01/43003047/stocks-rise-on-core-inflation-slowdown-banks-rally-after-strong-q4-earnings-treasury-yields-plummet">December inflation data</a>.
The report showing slowing underlying price pressures is a positive signal for the broader economy, fueling investor optimism that the Federal Reserve may soon implement further rate cuts. 
What Else: For Marvell, <a href="https://www.benzinga.com/economics/macro-economic-events/25/01/43001512/inflation-rises-to-29-in-december-core-slows-yet-rising-energy-costs-put-feds-target-at-risk">lower interest rates</a> reduce the cost of capital and could help spur investment in data centers, cloud computing, and 5G technologies—key areas in which Marvell plays a crucial role. 
As a semiconductor supplier that powers these industries, Marvell stands to gain from increased demand as businesses expand their infrastructure in response to favorable economic conditions.
Additionally, with semiconductor stocks often benefiting from a lower cost of financing, Marvell could see further upside as the probability of rate cuts in 2025 rises.
Read Also: <a href="https://www.benzinga.com/general/market-summary/25/01/42996490/nordea-parisi-gray-graypoint-load-up-on-marvell-technology-shares-iaim-dilutes-98-in-q4-heres-what-mrvls-technical-analysis-says">Nordea, Parisi Gray, Graypoint Load Up On Marvell Technology Shares, IAIM Dilutes 98% In Q4: Here&#8217;s What MRVL&#8217;s Technical Analysis Says</a>
Investors can gain exposure to&nbsp;MRVL by&nbsp;investing&nbsp;in the VanEck Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SMH#NASDAQ">SMH</a>).
<h2 class="wp-block-heading">How To Buy MRVL Stock</h2>
By now you're likely curious about how to participate in the market for Marvell Technology &#8211; be it to purchase shares, or even attempt to bet against the company.
Buying shares is typically done through a brokerage account. You can find a list of <a href="https://www.benzinga.com/money/best-stock-trading-platforms">possible trading platforms here.</a> Many will allow you to buy ‘fractional shares,' which allows you to own portions of stock without buying an entire share. For example, some stock, like Berkshire Hathaway, or Amazon.com, can cost thousands of dollars to own just one share. However, if you only want to invest a fraction of that, brokerages will allow you to do so. 
In the the case of Marvell Technology, which is trading at $116.72 as of publishing time, $100 would buy you 0.86 shares of stock.
If you're looking to bet against a company, the process is more complex. You'll need access to an options trading platform, or a broker who will allow you to ‘go short' a share of stock by lending you the shares to sell. The process of shorting a <a href="https://www.benzinga.com/money/how-to-short-a-stock">stock can be found at this resource.</a> Otherwise, if your broker allows you to trade options, you can either buy a put option, or sell a call option at a strike price above where shares are currently trading &#8211; either way it allows you to profit off of the share price decline.
According to data from&nbsp;<a href="https://benzinga.grsm.io/register174">Benzinga Pro</a>, MRVL has a 52-week high of $126.12 and a 52-week low of $53.19.

MRVL

What's Going On With Marvell Technology (MRVL) Stock?

Taiwan Semiconductor Manufacturing Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TSM#NYSE">TSM</a>), Samsung Electronics (OTC:<a class="ticker" href="https://www.benzinga.com/stock/SSNLF#OTC">SSNLF</a>), and&nbsp;Intel Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/INTC#NASDAQ">INTC</a>) could face more <a target="_blank" href="https://www.benzinga.com/government/regulations/25/01/42897081/nvidia-and-ai-chip-stocks-brace-for-impact-as-biden-administration-considers-new-china-export-ban-report" rel="noreferrer noopener">cumbersome export regulations</a> as the U.S. aims to restrict China&#8217;s access to advanced chips, citing national security threats.
The Biden administration&#8217;s latest measures seek to encourage the chipmakers&nbsp;to analyze and perform more due diligence on customers carefully, Bloomberg <a target="_blank" href="https://www.bloomberg.com/news/articles/2025-01-15/us-to-push-tsmc-and-samsung-to-tighten-flow-of-chips-to-china?srnd=phx-technology&amp;sref=TBDibEcD" rel="noreferrer noopener">cites</a> unnamed sources familiar with the matter.
Prior reports alleged Taiwan Semiconductor-made chips finding a way&nbsp;to the blacklisted Chinese company&nbsp;Huawei Technologies Co.
Also Read: <a target="_blank" href="https://www.benzinga.com/25/01/42986042/apple-sees-market-share-decline-in-2024-as-chinese-smartphone-brands-surge-globally-idc" rel="noreferrer noopener">Apple Sees Market Share Decline in 2024 as Chinese Smartphone Brands Surge Globally: IDC</a>
The latest sanctions, likely to be announced on Wednesday, could limit Nvidia Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>)&nbsp;and rivals&#8217; sales of AI chips to data centers in the U.S.&#8217;s non-ally countries like China and Russia.
The U.S. could restrict the export of advanced chips, implying those 14 or 16 nanometers and below, and mandate a government license to sell them in China and other restricted nations.
The suggested regulations aim to help chip manufacturers identify which designs, from which customers, are subject to U.S. semiconductor sanctions.
The U.S. aims to target more sophisticated processors, namely, AI accelerators designed by Chinese companies.
The U.S., Europe, and Japan ramped up their focus on their domestic semiconductor positions to reduce dependence on China by tapping chipmakers like Taiwan Semiconductor following <a target="_blank" href="https://www.benzinga.com/media/25/01/42981814/apple-and-nvidia-supplier-taiwan-semiconductor-leads-semiconductor-market-with-64-share" rel="noreferrer noopener">the 2020 pandemic</a> that disrupted the global supply chains.
Additionally, the U.S. started restricting China&#8217;s access to advanced semiconductor technology from Nvidia and Taiwan Semiconductor, which Washington alleged China utilized to boost its military warfare position.
The U.S. also encouraged its allies, including Taiwan and the Netherlands (home to chip equipment maker&nbsp;ASML Holding (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/asml#NASDAQ">ASML</a>), to restrict semiconductor trade with China.
Taiwan Semiconductor commanded a 64% <a target="_blank" href="https://www.benzinga.com/media/25/01/42981814/apple-and-nvidia-supplier-taiwan-semiconductor-leads-semiconductor-market-with-64-share" rel="noreferrer noopener">global foundry business share</a> in the third quarter of 2024. Samsung scored second with a 12% share backed by its 4nm and 5nm processes.
Investors can gain exposure to stocks of companies that manufacture semiconductors through the VanEck Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SMH#NASDAQ">SMH</a>) and the iShares Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SOXX#NASDAQ">SOXX</a>).
Price Action: TSM stock closed higher by 0.26% at $201.97 premarket at the last check on Wednesday.
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Photo by William Potter on Shutterstock

Taiwan Semi, Samsung, Intel May Face Stricter US Rules on Chip Exports to China Over Security Concerns

Apple Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>) is finalizing the verification of its <a target="_blank" href="https://www.benzinga.com/topic/semiconductors" rel="noreferrer noopener">&#8220;made in America&#8221;</a> processor chips from Taiwan Semiconductor Manufacturing Co&#8217;s (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TSM#NYSE">TSM</a>) plant in Arizona.
The first batch of commercial chips will likely by this quarter, Nikkei Asia <a target="_blank" href="https://asia.nikkei.com/Business/Tech/Semiconductors/Apple-in-final-stages-of-verifying-TSMC-s-Made-in-USA-chips" rel="noreferrer noopener">reports</a>.
The 2020 pandemic prompted countries including the U.S., Europe, and Japan to consolidate their semiconductor position by tapping chipmakers like Taiwan Semiconductor, Intel Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/INTC#NASDAQ">INTC</a>), Samsung Electronics Co (OTC:<a class="ticker" href="https://www.benzinga.com/stock/SSNLF#OTC">SSNLF</a>), thereby reducing their dependence on China.
Also Read: <a target="_blank" href="https://www.benzinga.com/government/regulations/25/01/42947562/taiwan-semiconductor-begins-4nm-chip-production-in-arizona-eyes-11-4-billion-q4-profit" rel="noreferrer noopener">Taiwan Semiconductor Begins 4nm Chip Production in Arizona, Eyes $11.4 Billion Q4 Profit</a>
<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="750" height="650" src="https://editorial-assets.benzinga.com/wp-content/uploads/2025/01/14050746/newplot-4.png" alt="" class="wp-image-732034" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2025/01/14050746/newplot-4.png 750w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/01/14050746/newplot-4-300x260.png 300w" sizes="(max-width: 750px) 100vw, 750px" /></figure>
Additionally, the U.S. started restricting China&#8217;s access to advanced semiconductor technology, which Washington alleged China utilized to boost its military warfare position.
Washington also restricted China&#8217;s access to sophisticated Nvidia Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) and Taiwan Semiconductor&#8217;s artificial intelligence chips.
The country also canvassed its allies, including Taiwan and the Netherlands (home to chip equipment maker ASML Holding (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/asml#NASDAQ">ASML</a>), to restrict semiconductor trade with China.
Meanwhile, Taiwan Semiconductor bagged a 64% share of the global foundry business in the third quarter of 2024, up from 62% in the second quarter, Taipei Times <a target="_blank" href="https://www.taipeitimes.com/News/biz/archives/2025/01/14/2003830149" rel="noreferrer noopener">cites</a> Counterpoint Research.
Last November, Counterpoint said Taiwan Semiconductor owed its moat to high utilization rates in its 5nm and 3nm processes, artificial intelligence (AI) accelerator demand, and smartphone sales.
Samsung came second with a 12% share backed by its 4nm and 5nm processes, Taipei Times cites Counterpoint.
China&#8217;s Semiconductor Manufacturing International came third after it secured 6%, backed by its 28nm process, Taipei Times cites Counterpoint.
United Microelectronics Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UMC#NYSE">UMC</a>) tied with GlobalFoundries Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GFS#NASDAQ">GFS</a>) with a 5% share backed by demand in the Internet of Things and communications infrastructure markets.
The 3nm process scored a second position in the third quarter, bagging a 13% share, on the back of the full utilization of Taiwan Semiconductor&#8217;s production capacity, as production by Apple, Qualcomm Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QCOM#NASDAQ">QCOM</a>), Intel gained momentum.
The 5 and 4nm processes bagged the numero uno position, securing 24% of the market in the third quarter, courtesy of demand for Nvidia&#8217;s Blackwell graphics processing units.
Taiwan Semiconductor plans to start producing its 2nm process at its fab in Hsinchu County&#8217;s Baoshan Township in 2025.
Goldman Sachs <a target="_blank" href="https://www.benzinga.com/25/01/42825523/taiwan-semi-likely-for-upside-backed-by-ai-demand-and-advanced-node-pricing-analyst-says" rel="noreferrer noopener">expressed optimism over</a> Taiwan Semiconductor&#8217;s prospects, citing AI demand and advanced node growth. Taiwan Semiconductor&#8217;s price hikes for 3 and 5nm nodes in 2025 (while Intel and Samsung struggle to develop their AI technology moat) could boost its margins to over 59%.
Taiwan Semiconductor stock surged over 98% in the last 12 months. Investors can gain exposure to the stocks of companies that manufacture semiconductors through VanEck Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SMH#NASDAQ">SMH</a>) and iShares Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SOXX#NASDAQ">SOXX</a>).
Price Action: TSM stock is down 0.65% at $200.05 at the last check on Tuesday.
Also Read:
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<li><a href="https://www.benzinga.com/government/regulations/25/01/42897081/nvidia-and-ai-chip-stocks-brace-for-impact-as-biden-administration-considers-new-china-export-ban-report" target="_blank" rel="noreferrer noopener">Nvidia and AI Chip Stocks Brace for Impact as Biden Administration Considers New China Export Ban: Report</a></li>
</ul>
Image via Shutterstock

QCOM

Apple And Nvidia Supplier Taiwan Semiconductor Leads Semiconductor Market with 64% Share

As Washington ramps up chip export restrictions to unfriendly countries, Nvidia Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) and Advanced Micro Devices Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMD#NASDAQ">AMD</a>) are in the midst of a geopolitical power shift that could disrupt the semiconductor <a href="https://www.benzinga.com/topic/semiconductors">industry&#8217;s global landscape.</a>
In a report shared Monday, Bloomberg outlined the Biden administration&#8217;s imminent release of updated export <a href="https://www.benzinga.com/government/regulations/25/01/42897081/nvidia-and-ai-chip-stocks-brace-for-impact-as-biden-administration-considers-new-china-export-ban-report">rules targeting advanced semiconductors. </a>
The new measures, expected to drop Friday, intensify the U.S.&#8217;s strategic efforts to slow China's technological and military advancements by restricting access to high-performance computing chips.
<h3 class="wp-block-heading">New AI Export Framework: Allies And Adversaries</h3>
The regulations will reportedly create a three-tiered structure for semiconductor exports, emphasizing access tiers for key U.S. allies, neutral nations, and restricted countries. 
China is expected to fall under the most severe tier, joining nations such as Russia, Iran, and Venezuela.
This tier-based framework allows certain companies in restricted countries to bypass national limits by agreeing to U.S. security protocols and human rights standards. 
These entities, designated as validated end users, would have higher caps for chip purchases, a move aimed at encouraging safer AI development globally.
The measures expand the sweeping export restrictions initiated in October 2022, which already limited sales of advanced AI chips like Nvidia's Hopper GPUs. 
These earlier rules also prohibited U.S. firms and individuals from supporting Chinese chip development without explicit government approval. 
<h3 class="wp-block-heading">Nvidia And AMD Under Scrutiny</h3>
Nvidia's specialized A800 and H800 chips, developed to comply with prior regulations, could now fall under new restrictions, potentially denting AI giant&#8217;s upcoming revenues. 
According to data firm FactSet, China accounts for approximately 16% of Nvidia&#8217;s revenue, making it the company's second-largest market after the U.S. This marks a decline from 25% prior to the 2022 export restrictions.
In 2023, AMD generated roughly $3.4 billion in revenue from China, including Hong Kong, according to Statista. This represents 15% of the company&#8217;s total revenue of $22.7 billion.
<h3 class="wp-block-heading">Key ETFs Tied To Nvidia And AMD</h3>
Several ETFs heavily exposed to Nvidia and AMD could face ripple effects:
Top ETFs Holding Nvidia (Percentage of Holdings):
<ul>
<li>ProShares Ultra Semiconductors (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/USD#NYSE">USD</a>): 34.96%</li>
<li>Strive U.S. Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SHOC#NASDAQ">SHOC</a>): 21.10%</li>
<li>YieldMax Target 12 Semiconductor Option (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SOXY#NASDAQ">SOXY</a>): 20.50%</li>
<li>VanEck Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SMH#NASDAQ">SMH</a>): 20.21%</li>
<li>VanEck Fabless Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SMHX#NASDAQ">SMHX</a>) – 20.11%</li>
</ul>
Top ETFs Holding AMD (Percentage of Holdings):
<ul>
<li>VanEck Video Gaming and Esports ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ESPO#NASDAQ">ESPO</a>): 8.01%</li>
<li>iShares Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SOXX#NASDAQ">SOXX</a>): 7.12%</li>
<li>AOT Growth and Innovation ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AOTG#NASDAQ">AOTG</a>): 7.07%</li>
<li>Invesco PHLX Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SOXQ#NASDAQ">SOXQ</a>): 7.04%</li>
<li>REX FANG &amp; Innovation Equity ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FEPI#NASDAQ">FEPI</a>): 6.95%</li>
</ul>
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<li><a href="https://www.benzinga.com/economics/macro-economic-events/25/01/42888800/goldman-sachs-flags-market-correction-risk-as-inflation-trump-policies-stir-uncertainty">Goldman Sachs Flags Market Correction Risk As Inflation, Trump Policies Stir Uncertainty</a></li>
</ul>
Image created using photos from Shutterstock.

AOTG

ESPO

FEPI

EA Series Trust Strive U.S. Semiconductor ETF

SHOC

SMHX

SOXQ

SOXY

Biden's Final Chip Curbs Set To Shake AI Markets: 10 ETFs With High Stakes In Nvidia, AMD

Broadcom Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AVGO#NASDAQ">AVGO</a>) could soon avail <a target="_blank" href="https://www.benzinga.com/topic/chipmakers" rel="noreferrer noopener">2-nm chip samples</a> from Japan&#8217;s Rapidus starting in&nbsp;June.
The development marks the Japanese chipmaker&#8217;s efforts to emulate key contract chipmaker Taiwan&nbsp;Semiconductor Manufacturing Co&#8217;s (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TSM#NYSE">TSM</a>) strategy, which catapulted it into the trillion-dollar market cap, Nikkei Asia <a target="_blank" href="https://asia.nikkei.com/Business/Tech/Semiconductors/Rapidus-aims-to-supply-cutting-edge-2-nm-chip-samples-to-Broadcom" rel="noreferrer noopener">reports</a>.
<a target="_blank" href="https://www.benzinga.com/government/22/12/30054231/rapidus-eyes-big-investment-to-boost-japans-chip-trajectory-collaborates-with-ibm-to-commercialize-2" rel="noreferrer noopener">Prior reports indicated</a> that International Business Machines Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IBM#NYSE">IBM</a>) and Rapidus are co-developing IBM&#8217;s 2-nm node technology for&nbsp;implementation at Rapidus&#8217; fab in Japan.
Also Read: <a target="_blank" href="https://www.benzinga.com/25/01/42825654/rivians-strong-deliveries-r2-line-plans-and-vw-jv-expansion-drive-analyst-optimism" rel="noreferrer noopener">Rivian&#8217;s Strong Deliveries, R2 Line Plans And VW JV Expansion Drive Analyst Optimism</a>
Rapidus is backed by&nbsp;Toyota Motor Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TM#NYSE">TM</a>),&nbsp;Sony Group Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SONY#NYSE">SONY</a>), and six other Japanese companies
Lately, countries including the U.S., Europe, Japan, and others have focused on consolidating their semiconductor base to reduce dependence on China after the 2020 pandemic disrupted global supply chains, triggering a severe semiconductor chip crisis.
Over the <a target="_blank" href="https://www.benzinga.com/news/24/07/39926002/after-donald-trumps-recent-taiwan-statement-sent-shockwaves-japans-pm-kishida-reveals-new-bill-to-bo" rel="noreferrer noopener">past three years</a>, Japan committed ~¥4 trillion ($26 billion) to boost its semiconductor sectors. Up to ¥920 billion of the subsidy went to Rapidus to help produce advanced chips.
Taiwan Semiconductor already has a 2-nm wafer plant in Baoshan, Hsinchu County, scheduled for <a target="_blank" href="https://www.benzinga.com/24/12/42721526/taiwan-semiconductors-kaohsiung-expansion-to-boost-jobs-and-2-nm-chip-production" rel="noreferrer noopener">mass production in 2025</a>.
Taiwan Semiconductor Chair C.C. Wei had highlighted interest in its 2-nm process, which prompted it to ramp up production capacity.
Taiwan Semiconductor&#8217;s additional facilities in Kaohsiung&nbsp;will likely start <a target="_blank" href="https://www.benzinga.com/24/11/42241689/taiwan-semiconductors-advanced-2nm-chips-to-hit-us-market-by-2028" rel="noreferrer noopener">2-nm production in 2026</a>. It is constructing two advanced fabs in Arizona, with plans to commercialize chips using 3-nm and 2-nm processes in 2028.
Meanwhile, Broadcom, which emerged as the most valuable chip company after Nvidia Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>), is set for a <a target="_blank" href="https://www.benzinga.com/analyst-ratings/analyst-color/24/08/40505439/broadcom-secures-major-wins-with-openai-google-meta-as-it-targets-150b-ai-market" rel="noreferrer noopener">$150 billion AI opportunity</a> per JPMorgan&#8217;s Harlan Sur.
This opportunity is backed by its 2-nm and 3-nm technology and strong partnerships with Alphabet Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>) (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>) Google, and Meta Platforms Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>). Broadcom bagged multi-generational AI ASIC programs with OpenAI and a fifth major customer, all set for a 2026 ramp-up.
Wedbush&#8217;s Dan Ives <a target="_blank" href="https://www.benzinga.com/25/01/42813592/ai-chip-stocks-nvidia-broadcom-amd-taiwan-semi-micron-super-micro-surge-on-monday-whats-going-on" rel="noreferrer noopener">expects tech stocks</a> to gain 25% in 2025, backed by President-elect&nbsp;Donald Trump&#8217;s policies and Big Tech spending.
Investors can gain exposure to semiconductor stocks through VanEck Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SMH#NASDAQ">SMH</a>) and iShares Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SOXX#NASDAQ">SOXX</a>).
Price Action: AVGO stock closed at $228.64 on Wednesday.
Also Read:
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<li><a href="https://www.benzinga.com/25/01/42793394/nvidias-2-trillion-ai-rally-fueled-by-chips-startups-and-robotics" target="_blank" rel="noreferrer noopener">Nvidia&#8217;s $2 Trillion AI Rally In 2024 Fueled by Chips, Startups, and Robotics</a></li>
</ul>
Photo via Shutterstock

Sony Group Corporation American Depositary Shares

SONY

Japanese Chipmaker Rapidus Sets Sight on Broadcom to Emulate Taiwan Semiconductor's Market Dominance

<a href="https://www.bloomberg.com/news/articles/2025-01-08/biden-to-further-limit-nvidia-amd-ai-chip-exports-in-final-push?srnd=homepage-americas&amp;sref=TBDibEcD" title="https://www.bloomberg.com/news/articles/2025-01-08/biden-to-further-limit-nvidia-amd-ai-chip-exports-in-final-push?srnd=homepage-americas&amp;sref=TBDibEcD">https://www.bloomberg.com/news/articles/2025-01-08/biden-to-further-limit-nvidia-amd-ai-chip-exports-in-final-push?srnd=homepage-americas&amp;sref=TBDibEcD</a>

Macro Economic Events

Economics

Bloomberg: Biden to Further Limit Nvidia, AMD AI Chip Exports in Final Push

At CES 2025, Intel Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/INTC#NASDAQ">INTC</a>) <a target="_blank" href="https://www.benzinga.com/pressreleases/25/01/b42864257/intel-accelerates-software-defined-innovation-with-whole-vehicle-approach" rel="noreferrer noopener">showcased an expanded</a> product portfolio and new partnerships to accelerate automakers&#8217; transitions to electric and software-defined vehicles (SDVs).
Intel now offers a whole-vehicle platform, including high-performance computing, discrete graphics, and artificial intelligence (AI), alongside the Intel&nbsp;Automotive Virtual Design Environment (VDE) co-developed with Amazon.Com Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>) Amazon Web Services (AWS).
In 2024, AWS and Intel <a target="_blank" href="https://www.benzinga.com/analyst-ratings/analyst-color/24/09/40904754/amazons-leaner-structure-and-ai-chip-partnership-with-intel-could-boost-growth-bofa" rel="noreferrer noopener">forged a multi-year</a> and&nbsp;multi-billion-dollar&nbsp;custom AI chip deal.
Intel&#8217;s optimization of the entire vehicle&#8217;s electrical and electronic architecture drives significant cost reductions and performance improvements, the company said.
Also Read: <a target="_blank" href="https://www.benzinga.com/markets/emerging-markets/24/12/42700628/chinas-ev-price-wars-hit-auto-profits-smaller-players-struggle-as-margins-shrink" rel="noreferrer noopener">China&#8217;s EV Price Wars Hit Auto Profits, Smaller Players Struggle as Margins Shrink</a>
Intel announced the availability of the Adaptive Control Unit (ACU) for electric vehicle (EV) power trains and zonal controller applications.
The ACU U310 supports consolidating multiple real-time, safety-critical, and cybersecurity functions, applications, and domains into a single chip.
Stellantis NV (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/STLA#NYSE">STLA</a>) Stellantis Motorsports&nbsp;and Karma Automotive adopted the adaptive control technology for their next-generation inverter control.
Intel announced the upcoming second-generation Intel&nbsp;Arc B-series Graphics for Automotive set for production by the end of 2025.
Intel and AWS introduced the Intel Automotive Virtual Development Environment on AWS, which ensures true hardware and software parity from cloud to car, integrating Intel&nbsp;Xeon&nbsp;processor-based Amazon EC2 instances and incorporating Intel&#8217;s Automotive SDV SoCs within the AWS environment.
Also this week, Intel launched a new suite of Intel&nbsp;Core&nbsp;Ultra (Series 2) processors to boost mobile computing for businesses, creators, and gamers.
Intel&#8217;s latest processors <a target="_blank" href="https://www.benzinga.com/trading-ideas/movers/25/01/42832243/whats-going-on-with-intel-stock-monday-2" rel="noreferrer noopener">offer AI enhancements</a>. It aims to drive its AI PC product portfolio in 2025 and beyond.
Intel stock plunged 59% in the last 12 months after failing to tap the AI frenzy that <a target="_blank" href="https://www.benzinga.com/25/01/42825523/taiwan-semi-likely-for-upside-backed-by-ai-demand-and-advanced-node-pricing-analyst-says" rel="noreferrer noopener">catapulted contract chipmaker</a> Taiwan Semiconductor Manufacturing Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TSM#NYSE">TSM</a>) into a trillion-dollar company. Additionally, Intel lost <a target="_blank" href="https://www.benzinga.com/25/01/42826372/intel-struggles-to-compete-with-amd-and-nvidia-in-data-centers-and-ai-chips" rel="noreferrer noopener">market share in</a> data centers, AI, and GPUs to Advanced Micro Devices, Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMD#NASDAQ">AMD</a>) and Nvidia Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>), impacting its profitability.
Investors can gain exposure to Intel through iShares Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SOXX#NASDAQ">SOXX</a>) and VanEck Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SMH#NASDAQ">SMH</a>).
Price Action:&nbsp;INTC stock is down 0.60% at $19.89 at the last check on Wednesday.
Also Read:
<ul>
<li><a href="https://www.benzinga.com/media/24/12/42681123/ai-smartphones-to-cushion-semiconductor-industry-amid-data-center-uncertainty-report" target="_blank" rel="noreferrer noopener">AI Smartphones To Cushion Semiconductor Industry Amid Data Center Uncertainty: Report</a></li>
</ul>
Photo by Tada Images via Shutterstock

STLA

Intel Partners with Amazon Cloud to Drive Next-Gen Smart Vehicle Tech, Wins Stellantis, Karma Auto As Clients

<figure class="wp-block-image size-large"><img decoding="async" src="https://thearorareport.com/wp-content/uploads/2025/01/2025-01-08_08h14_20.png" alt="" /></figure>
To gain an edge, this is what you need to know today.
<h4 class="wp-block-heading">Interest Rates Rise</h4>
An enlarged chart of NVIDIA Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>).
Note the following:
<ul>
<li>This article is about the big picture, not an individual stock.&nbsp; The chart of NVDA stock is being used to illustrate the point.</li>
<li>The chart shows NVDA stock attempted to break out yesterday after a great speech from Nvidia CEO Jensen Huang.</li>
<li>The chart shows NVDA stock fell below the micro resistance zone and is in the support zone as of this writing in the premarket.&nbsp; Previously, the micro resistance zone was a micro support zone.</li>
<li>The chart shows the breakout of NVDA stock failed.</li>
<li>The chart shows the pullback yesterday was not on low volume.&nbsp; This indicates conviction.</li>
<li>The pattern on the NVDA chart is known as an outside day.&nbsp; This is a negative pattern.</li>
<li>The momo crowd was piling into NVDA stock going into Huang's speech and in the early trade yesterday.&nbsp; The momo crowd aggressively bought out of money call options that are likely to expire worthless.</li>
<li>The momo crowd is suffering major losses because they took on a very large quantity of call options and fully margined large stock positions.&nbsp; This underscores the importance of position sizing.&nbsp; The Arora Report is one of very few resources that has perfected the art of position sizing.</li>
<li>The real reason behind NVDA's breakout falling is that the stock is in the fifth stage of the <a href="https://thearorareport.com/ppp-long-trade-ppp" target="_blank" rel="noreferrer noopener nofollow">five stages of a long trade</a>.  When a stock is in the fifth stage, there are three possible futures:
<ul>
<li>The stock stays in stage five for a long time.</li>
<li>The stock starts the <a href="https://thearorareport.com/five-stages-of-a-short-trade-ppp" target="_blank" rel="noreferrer noopener nofollow">five stages of a short trade</a>.</li>
<li>The stock breaks out and starts another cycle of the five stages to the upside.</li>
</ul>
</li>
<li>As full disclosure, The Arora Report's call is to partially hedge NVDA and other semiconductor stocks, including semiconductor ETF VanEck Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SMH#NASDAQ">SMH</a>).</li>
<li>Bond yields have been rising in response to strong economic data:
<ul>
<li>ADP employment change came at 122K vs. 131K consensus.</li>
<li>Initial jobless claims came at 201K vs. 218K consensus.</li>
<li>JOLTS job openings came at 8.098M vs. 7.839M prior.</li>
<li>ISM Services came at 54.1% vs. 53% consensus.</li>
</ul>
</li>
<li>Rising yields are beginning to put pressure on stocks.</li>
</ul>
<h4 class="wp-block-heading">Magnificent Seven Money Flows</h4>
In the early trade, money flows are positive in Microsoft Corp and NVDA.
In the early trade, money flows are neutral in Meta Platforms Inc .
In the early trade, money flows are negative in Apple Inc, Amazon.com, Inc., Alphabet Inc Class C , and Tesla Inc.
In the early trade, money flows are mixed in SPDR S&amp;P 500 ETF Trust and Invesco QQQ Trust Series 1.
<h4 class="wp-block-heading">Momo Crowd And Smart Money In Stocks</h4>
Investors can gain an edge by knowing money flows in SPY and QQQ.  Investors can get a bigger edge by knowing when smart money is buying stocks, gold, and oil.  The most popular ETF for gold is SPDR Gold Trust.  The most popular ETF for silver is iShares Silver Trust.  The most popular ETF for oil is United States Oil ETF.
<h4 class="wp-block-heading">Bitcoin</h4>
Bitcoin has seen selling along with other speculative and junk stocks.
<h4 class="wp-block-heading">Protection Band And What To Do Now</h4>
It is important for investors to look ahead and not in the rearview mirror.&nbsp; The proprietary protection band from The Arora Report is very popular.&nbsp; The protection band puts all of the data, all of the indicators, all of the news, all of the crosscurrents, all of the models, and all of the analysis in an analytical framework that is easily actionable by investors.
Consider continuing to hold good, very long term, existing positions. Based on individual risk preference, consider a protection band consisting of cash or Treasury bills or short-term tactical trades as well as short to medium term hedges and short term hedges. This is a good way to protect yourself and participate in the upside at the same time.
You can determine your protection bands by adding cash to hedges.&nbsp; The high band of the protection is appropriate for those who are older or conservative. The low band of the protection is appropriate for those who are younger or aggressive.&nbsp; If you do not hedge, the total cash level should be more than stated above but significantly less than cash plus hedges.
A protection band of 0% would be very bullish and would indicate full investment with 0% in cash.&nbsp; A protection band of 100% would be very bearish and would indicate a need for aggressive protection with cash and hedges or aggressive short selling.
It is worth reminding that you cannot take advantage of new upcoming opportunities if you are not holding enough cash.&nbsp; When adjusting hedge levels, consider adjusting partial stop quantities for stock positions (non ETF); consider using wider stops on remaining quantities and also allowing more room for high beta stocks.&nbsp; High beta stocks are the ones that move more than the market.
<h4 class="wp-block-heading">Traditional 60/40 Portfolio</h4>
Probability based risk reward adjusted for inflation does not favor long duration strategic bond allocation at this time.
Those who want to stick to traditional 60% allocation to stocks and 40% to bonds may consider focusing on only high quality bonds and bonds of five year duration or less.&nbsp; Those willing to bring sophistication to their investing may consider using bond ETFs as tactical positions and not strategic positions at this time.
The Arora Report is known for its accurate calls. The Arora Report correctly called the big artificial intelligence rally before anyone else, the new bull market of 2023, the bear market of 2022, new stock market highs right after the virus low in 2020, the virus drop in 2020, the DJIA rally to 30,000 when it was trading at 16,000, the start of a mega bull market in 2009, and the financial crash of 2008. Please click here to sign up for a free forever <a href="https://thearorareport.com/generate-wealth-newsletter-benzinga">Generate Wealth Newsletter</a>.

Failed Nvidia Breakout Burns Momo Crowd, Interest Rates Rise On Strong Economic Data

StradVision, an artificial intelligence-based vision perception technology company, tapped Advanced Micro Devices, Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMD#NASDAQ">AMD</a>) to combine the former&#8217;s 3D Perception SVNet with AMD&#8217;s <a href="https://www.benzinga.com/topic/amd" target="_blank" rel="noreferrer noopener">processing technology</a>. 
The goal is to deliver high-performance perception solutions for automated driving systems.
<a href="https://www.benzinga.com/25/01/42775636/ces-2025-preview-nvidia-amd-in-spotlight-other-trends-and-stocks-to-watch">At CES 2025</a>, StradVision will showcase a joint technology demonstration with AMD that features the former&#8217;s 3D Perception SVNet, powered by the AMD Versal AI Edge Series adaptive SoC. 
This device leverages an 8MP front-facing camera, underpinning StradVision&#8217;s commitment to enhancing ADAS (Advanced Driver Assistance Systems) and autonomous driving technologies with adaptive computing hardware from AMD.
Also Read: <a href="https://www.benzinga.com/25/01/42791013/netflixs-strong-execution-and-innovative-content-strategy-impress-analyst" target="_blank" rel="noreferrer noopener">Bearish Analyst Regrets Not Upgrading Netflix To Buy In 2023</a>
AMD Versal AI Edge Series delivers high performance, low latency AI inference for intelligence in automated driving and other demanded AI-driven embedded systems.
The Versal AI Edge series, designed for sensor fusion and AI algorithm development, delivers scalable solutions that address diverse performance and power requirements from edge to endpoint applications.
This collaboration combines AMD adaptive computing hardware with StradVision&#8217;s perception software, offering a comprehensive perception stack tailored for real-world driving conditions and delivering reliable, scalable solutions to automotive manufacturers worldwide.
Wayne Lyons of the AMD Automotive segment flagged StradVision&#8217;s contribution towards increasing access to ADAS technologies by reducing its cost without compromising its capability. Together, the companies are addressing the growing demand for scalable, high-performance solutions that enhance the safety and functionality of automated driving systems, Lyons added.
Wedbush&#8217;s Dan Ives expects President-elect Trump&#8217;s second term to boost Tesla&#8217;s <a href="https://www.benzinga.com/markets/equities/24/11/41832876/elon-musk-shines-in-trump-sweepstakes-a-big-win-for-tesla-dan-ives-thinks-so">autonomous driving initiatives</a>, potentially unlocking $1 trillion in value. These initiatives are backed by regulatory fast-tracking of autonomous vehicle technology. Expect the deployment of robotaxis to occur by 2026 or 2027, he says.
Uber Technologies Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UBER#NYSE">UBER</a>) and WeRide Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/WRD#NASDAQ">WRD</a>) already launched <a href="https://www.benzinga.com/24/12/42439768/innoviz-tech-stock-shoots-up-after-lidar-supply-deal-with-mobileye" target="_blank" rel="noreferrer noopener">robotaxi service in Abu Dhabi</a>.
Alphabet Uber&#8217;s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>) (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>) Waymo and Baidu Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BIDU#NASDAQ">BIDU</a>) also remain committed to their autonomous vehicle ambitions.
Price Action: AMD stock is up 2.62% at $128.66 at last check Monday.
Also Read:
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<li><a href="https://www.benzinga.com/25/01/42785778/stellantis-and-volkswagen-lose-us-ev-tax-credits-stocks-tumble" target="_blank" rel="noreferrer noopener">Stellantis, Volkswagen Stocks Tumble As US EV Tax Credits Disappear</a></li>
</ul>
Image: Shutterstock

BIDU

UBER

AMD, StradVision Team Up To Boost Driver Assistance Systems For Autonomous Cars

SMH: 2.7% &#x7C; <a href="https://www.benzinga.com//node/42808796">Apple Supplier Foxconn Posts Record Revenue, Rides High On AI Server Demand And Nvidia Partnership</a>
&nbsp;
RHE: 350% &#x7C; <a href="https://www.benzinga.com//node/42810878">Regional Health to Merge with SunLink in $10M Preferred Stock Deal</a>
&nbsp;
SERV: 18% &#x7C; <a href="https://www.benzinga.com//node/42811227">Serve Robotics Raises $86M in December, Reaching $167M for 2024</a>

SERV

Market-Moving News for January 6th

The artificial intelligence frenzy and demand for its <a target="_blank" href="https://www.benzinga.com/topic/nvidia" rel="noreferrer noopener">AI-centric chips</a> catapulted Nvidia&nbsp;Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) into the trillion-dollar market cap club for 2024. It lags behind Apple&nbsp;Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>), which was backed by investor curiosity over its potential AI offerings, turbocharging its iPhone sales.
Reuters reports that Nvidia&#8217;s valuation surged by over $2 trillion in 2024, reaching over $3 trillion, making it the second-most valuable public company. It owes its success to its GPUs, which were previously targeted at video games but ultimately transformed into critical hardware for developing AI models.
Also Read: <a target="_blank" href="https://www.benzinga.com/25/01/42784508/taiwan-semiconductors-2nm-progress-fuels-taiwan-index-musk-highlights-talent-pool" rel="noreferrer noopener">What&#8217;s Going On With Taiwan Semiconductor Stock On Friday?</a>
According to the report, Nvidia invested <a target="_blank" href="https://www.benzinga.com/markets/equities/25/01/42758502/nvidias-investments-in-elon-musks-xai-perplexity-openai-and-other-startups-crossed-1-billion-mark-in-2024" rel="noreferrer noopener">$1 billion across</a> 50 startup funding rounds in 2024 (versus $872 million in 2023), including Elon Musk&#8217;s&nbsp;xAI. It also acquired multiple AI players, including&nbsp;Run:ai,&nbsp;Nebulon, and&nbsp;OctoAI.
Nvidia <a target="_blank" href="https://www.benzinga.com/24/12/42728884/nvidia-gains-momentum-with-runai-deal-and-robotics-innovations" rel="noreferrer noopener">eyes robotics as</a> a growth catalyst amid rising AI competition. The chip designer plans to introduce Jetson Thor computers for humanoid robots in 2025, coinciding with Tesla Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>) targeting the availability of its humanoid robot, Optimus, by 2026.
Other trillion-dollar tech companies included Microsoft&nbsp;Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>), Google parent Alphabet Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>)&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>), and Amazon.Com Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>).
Broadcom Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AVGO#NASDAQ">AVGO</a>) entered the <a target="_blank" href="https://www.benzinga.com/media/25/01/42762874/broadcom-thrives-with-114-stock-surge-in-ai-boom-while-intel-faces-steep-decline" rel="noreferrer noopener">trillion-dollar club</a> in 2024, backed by demand for its custom chips from the U.S. Big Tech giants. In 2024, a third of the ten global companies worth over $1 trillion came from the chip industry.
These companies were instrumental in the S&amp;P 500 and Nasdaq index&#8217;s&nbsp;surge of 23%—29% in 2024, backed by investor and analyst enthusiasm despite Donald Trump&#8217;s tariff threat and U.S. interest rate concerns.
Daniel Ives of Wedbush told Reuters he expects tech stocks to post a 25% gain in 2025, citing favorable regulatory policies under Donald Trump, AI capital expenditures, and more.
Nvidia stock surged 203% in the last 12 months. Investors can gain exposure to the stock through VanEck Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SMH#NASDAQ">SMH</a>) and Fidelity MSCI Information Technology Index ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FTEC#NYSE">FTEC</a>).
Price Action:&nbsp;NVDA stock is up 4.28% at $144.23 at the last check Friday.
Also Read:
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<li><a href="https://www.benzinga.com/media/25/01/42761737/alibaba-leverages-scale-and-deep-pockets-to-slash-ai-llm-prices-to-gain-market-share" target="_blank" rel="noreferrer noopener">Alibaba Leverages Scale and Deep Pockets to Slash AI LLM Prices To Gain Market Share</a></li>
</ul>
Photo courtesy of Nvidia

Nvidia's $2 Trillion AI Rally In 2024 Fueled by Chips, Startups, and Robotics

Taiwan Semiconductor Manufacturing Co&#8217;s (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TSM#NYSE">TSM</a>) plan to <a target="_blank" href="https://www.benzinga.com/24/12/42721526/taiwan-semiconductors-kaohsiung-expansion-to-boost-jobs-and-2-nm-chip-production" rel="noreferrer noopener">produce 2nm chips</a> in Taiwan is progressing steadily as the contract chipmaker prepares to begin commercializing 4nm chips at its Arizona fab.
The chipmaker has completed limited risk production of ~5,000 wafers leveraging its 2nm process at the Baoshan fab in Hsinchu Science Park, TechNode <a target="_blank" href="https://technode.com/2025/01/03/tsmc-completes-risk-production-of-2nm-process-with-5000-wafers/" rel="noreferrer noopener">reports</a>.&nbsp;
Taiwan Semiconductor has planned to roll out its 2nm production at the Baoshan and Kaohsiung fabs.
Also Read: <a target="_blank" href="https://www.benzinga.com/media/25/01/42762874/broadcom-thrives-with-114-stock-surge-in-ai-boom-while-intel-faces-steep-decline" rel="noreferrer noopener">Broadcom Thrives with 114% Stock Surge in AI Boom, While Intel Faces Steep Decline</a>
During an earnings call, Taiwan Semiconductor Chair C.C. Wei said the company does not expect a shift toward chipset designs driven by high-performance computing (HPC) to affect its 2nm production.
Wei said that growing interest in 2nm has increased demand, surpassing 3nm.
Taiwan Semiconductor launched the N2P process technology to support smartphone and high-performance computing (HPC) applications. Mass production will begin in the second half of 2026, he added.
Shares in Taiwan closed higher on Friday, buoyed by gains in the electronics sector, particularly Taiwan Semiconductor, the most extensive stock by market weight.
The Taiex showed resilience despite mixed signals from U.S. markets, which saw slight declines in the Dow Jones Industrial Average and Nasdaq index on Thursday, Focus Taiwan <a target="_blank" href="https://focustaiwan.tw/business/202501030010" rel="noreferrer noopener">reports</a>.
Analysts credited Taiwan Semiconductor&#8217;s strong performance for lifting the Taiex, contributing 80 points to the index&#8217;s rise.
Elon Musk, CEO of Tesla Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>) also highlighted Taiwan&#8217;s significant technical expertise as the foundation of its semiconductor industry&#8217;s success in an X post on December 28, where he praised the island&#8217;s talent pool in response to a discussion about Taiwan Semiconductor, Focus Taiwan <a target="_blank" href="https://focustaiwan.tw/business/202501030007" rel="noreferrer noopener">reports</a>.
Responding to a post by Bojan Tunguz, a former data scientist at Nvidia Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>), Musk credited Taiwan&#8217;s untapped talent pool for Taiwan Semiconductor&#8217;s dominance.
Tunguz had criticized the U.S. tech industry&#8217;s historical anti-immigrant biases, arguing they led Morris Chang to establish Taiwan Semiconductor in Taiwan rather than the U.S.
Taiwan Semiconductor plays a critical role in global chip production, holding a 64.9% market share in the third quarter of 2024, Focus Taiwan cites TrendForce.
Musk&#8217;s recent praise contrasts with his earlier comments on Taiwan&#8217;s geopolitical status. In 2022, he suggested Taiwan could be designated a &#8220;special administrative zone&#8221; to ease tensions with China, likening Taiwan&#8217;s relationship with China to Hawaii&#8217;s ties with the U.S.
Donald Trump has also voiced concerns over <a target="_blank" href="https://www.benzinga.com/news/24/11/41780976/chip-stocks-like-nvidia-broadcom-taiwan-semi-gain-after-trump-win-whats-going-on" rel="noreferrer noopener">trading with Taiwan</a>. Previously, Trump expressed concerns about trade with Taiwan, accusing the country of undermining the U.S. chip industry.
He criticized the CHIPS Act and vowed to impose tariffs on Taiwanese chips if elected. Trump questioned the U.S. defense position with Taiwan, citing the absence of a formal treaty, and opposed federal CHIPS Act funding for foreign companies like Taiwan Semiconductor.
Taiwan Semiconductor stock surged over 101% in the last 12 months.
Investors can gain exposure to the semiconductor stocks through VanEck Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SMH#NASDAQ">SMH</a>) and ProShares Ultra Semiconductors (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/USD#NYSE">USD</a>).
Price Action: TSM stock is up 0.92% to $203.43 premarket at the last check on Friday.
Also Read:
<ul>
<li><a href="https://www.benzinga.com/24/12/42725756/xiaomi-evs-to-access-charging-networks-of-nio-xpeng-and-li-auto" target="_blank" rel="noreferrer noopener">Xiaomi Expands EV Charging Options, Partners with NIO, XPeng, and Li Auto for Greater Network Access</a></li>
</ul>
Image via Shutterstock

What's Going On With Taiwan Semiconductor Stock On Friday?

The year 2024 proved very eventful for the semiconductor companies in the U.S. tech sector. It rewarded those, including Nvidia Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) and Broadcom Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AVGO#NASDAQ">AVGO</a>), that successfully tapped the artificial intelligence wave while punishing those that failed, like Intel Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/INTC#NASDAQ">INTC</a>).
A third of the ten global companies worth over $1 trillion came from the chip industry, Bloomberg <a target="_blank" href="https://www.bloomberg.com/news/newsletters/2024-12-30/broadcom-boom-intel-bust-show-opposite-sides-of-chip-industry?sref=TBDibEcD" rel="noreferrer noopener">reports</a>.
Also Read: <a target="_blank" href="https://www.benzinga.com/24/12/42728884/nvidia-gains-momentum-with-runai-deal-and-robotics-innovations" rel="noreferrer noopener">Nvidia Completes Run:ai Buyout: Details</a>
In 2024, Broadcom joined Taiwan Semiconductor Manufacturing Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TSM#NYSE">TSM</a>) and Nvidia in the coveted Trillion club.
<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="750" height="650" src="https://editorial-assets.benzinga.com/wp-content/uploads/2025/01/02060246/newplot.png" alt="" class="wp-image-714832" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2025/01/02060246/newplot.png 750w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/01/02060246/newplot-300x260.png 300w" sizes="(max-width: 750px) 100vw, 750px" /></figure>
Broadcom stock surged 114%, while Intel plunged 58% in the last 12 months, underscoring the strategies that worked or failed for the companies.
Broadcom develops custom chips for&nbsp;U.S. Big Tech companies like Alphabet Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>) (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>), Google, Meta Platforms Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>), and Microsoft Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>).
Contract chipmaker Intel lost out on mobile chips to Qualcomm Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QCOM#NASDAQ">QCOM</a>), Arm Holdings plc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ARM#NASDAQ">ARM</a>), and Apple Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>), CNBC <a target="_blank" href="https://www.cnbc.com/2024/12/31/silicon-valley-turn-of-fortune-intel-worst-year-broadcom-record-gain.html" rel="noreferrer noopener">reports</a>.
Nvidia proved to be another nemesis for Intel after the former&#8217;s GPUs, targeted at video games, have transformed into critical hardware for developing AI models. Advanced Micro Devices, Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMD#NASDAQ">AMD</a>) also started <a target="_blank" href="https://www.benzinga.com/analyst-ratings/analyst-color/24/07/40016694/intel-analyst-flags-amd-competition-as-key-challenge-predicts-modest-growth-for-q2" rel="noreferrer noopener">snatching market share</a> in the PC and server CPU markets by tapping&nbsp;Taiwan Semiconductor, which proved a triple whammy for Intel.
All of which rendered Intel&#8217;s CPU, formerly the most significant and expensive part of a server, redundant in an AI server. Nvidia GPUs meant for 2025 do not need an Intel CPU.
Meanwhile, Broadcom emerged as the second most valuable chip company after Nvidia, which reached a $3.4 trillion valuation thanks to the AI frenzy, gaining 179% in the last 12 months.
Once the most valuable chipmaker, Intel saw its valuation tumble from a $300 billion market cap in 2020 to $85 billion in 2024, prompting it to downsize its workforce, fire veteran CEO Pat Gelsinger, and potentially divest core parts of its business. Nvidia replaced it in the Dow Jones Industrial Average.
Investors continue to reward Broadcom for its more straightforward and affordable XPUs than Nvidia&#8217;s GPUs.
On the company&#8217;s&nbsp;earnings call,&nbsp;Broadcom chief Hock E.&nbsp;Tan shared plans to double shipments of its XPUs to its three hyperscale providers, including Google and, reportedly, TikTok parent ByteDance and Meta.
Tan expects the companies to incur $60 billion—$90 billion in XPU capital expenditures in the next two years. Broadcom expects AI revenue to constitute 65% of its revenue in the first quarter from 40% in the fourth quarter.
Tan projected a decade-long sustained AI demand backed by Big Tech ambitions, citing investments by OpenAI and Elon Musk&#8217;s xAI. Rosenblatt&#8217;s Hans Mosesmann&nbsp;expects&nbsp;Broadcom&#8217;s <a target="_blank" href="https://www.benzinga.com/trading-ideas/movers/24/12/42613368/broadcom-expects-decade-long-ai-chip-boom-as-big-tech-invest-billions" rel="noreferrer noopener">custom-chip (ASIC) AI abilities</a> and surging AI demand to boost rivalry with AMD and Nvidia.
In 2025, Intel will release a new AI chip dubbed Falcon Shores.
Intel had divulged plans to turn its foundry business into an independent unit and does not expect meaningful sales from outside customers until 2027.
Goldman Sachs&#8217; Toshiya Hari, Benchmark&#8217;s Cody Acree, Needham&#8217;s N. Quinn Bolton, Oppenheimer&#8217;s Rick Schafer, and KeyBanc&#8217;s John Vinh flagged <a target="_blank" href="https://www.benzinga.com/analyst-ratings/analyst-color/24/11/41691058/intel-struggles-with-market-share-profitability-q3-analyst-insights" rel="noreferrer noopener">Intel&#8217;s competitive pressures</a> and margin challenges on the back of modest revenue growth.
Investors can gain exposure to the semiconductor sector through VanEck Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SMH#NASDAQ">SMH</a>) and iShares Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SOXX#NASDAQ">SOXX</a>).
Price Actions:&nbsp;At last check Thursday, AVGO stock was up 2.45% at $237.51 premarket, while INTC stock was up 1.20%.
Also Read:
<ul>
<li><a href="https://www.benzinga.com/24/12/42721526/taiwan-semiconductors-kaohsiung-expansion-to-boost-jobs-and-2-nm-chip-production" target="_blank" rel="noreferrer noopener">Taiwan Semiconductor&#8217;s Kaohsiung Expansion To Boost 2-nm Chip Production</a></li>
</ul>
Photo via Shutterstock

Broadcom Thrives with 114% Stock Surge in AI Boom, While Intel Faces Steep Decline

Nvidia Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) completed acquiring Israeli startup<a target="_blank" href="https://www.run.ai/blog/run-ai-joins-nvidia" rel="noreferrer noopener"> </a><a target="_blank" href="https://www.run.ai/blog/run-ai-joins-nvidia" rel="noreferrer noopener">Run:ai</a>, marking its most significant in Israel since its $6.9 billion Mellanox Technologies deal in 2020.
The startup pledged to help customers maximize their <a target="_blank" href="https://www.benzinga.com/topic/artificial-intelligence" rel="noreferrer noopener">AI infrastructure</a> by providing flexible, efficient, and highly utilized GPU systems. These solutions will be available across various platforms, including on-premises setups, cloud-based native solutions, and Nvidia DGX Cloud, which was co-developed with leading cloud service providers.
Also Read: <a target="_blank" href="https://www.benzinga.com/24/12/42725756/xiaomi-evs-to-access-charging-networks-of-nio-xpeng-and-li-auto" rel="noreferrer noopener">Xiaomi Expands EV Charging Options, Partners with NIO, XPeng, and Li Auto for Greater Network Access</a>
Aligned with its open-platform philosophy, Run:ai, now part of Nvidia, will continue empowering AI teams to select the tools, platforms, and frameworks that best meet their needs. It plans to strengthen partnerships and collaborate with the ecosystem to deliver diverse AI solutions and platform options.
Additionally, the startup intends to open-source its Run:ai software, enabling the broader AI community to accelerate innovation. While supporting only Nvidia GPUs, the open-source initiative aims to expand compatibility across the entire AI ecosystem.
In April, Nvidia <a target="_blank" href="https://www.benzinga.com/government/24/04/38430747/nvidia-bolsters-ai-management-capabilities-purchases-israeli-firm-run-ai-for-roughly-700m" rel="noreferrer noopener">shared plans to</a> acquire Run:ai, reportedly for around $600 million &#8211; $700 million, and integrate it into its operations in Israel, which employed ~4,000 people across seven R&amp;D centers.
However, the deal drew regulatory scrutiny from&nbsp;<a target="_blank" href="https://www.benzinga.com/government/24/11/41685490/nvidias-run-ai-acquisition-draws-european-regulatory-scrutiny-on-competition-concerns" rel="noreferrer noopener">the European Commission</a> over possible anticompetitive concerns.
Nvidia stock surged over 190% year-to-date. The company is eying robotics as its next growth catalyst and plans to launch Jetson Thor computers for <a target="_blank" href="https://www.benzinga.com/media/24/12/42721414/nvidia-targets-robotics-as-next-big-opportunity-amid-rising-ai-rivalry" rel="noreferrer noopener">humanoid robots in 2025</a>. Tesla Inc plans to start <a target="_blank" href="https://www.benzinga.com/media/24/11/41984426/nvidia-powers-teslas-humanoid-robots-with-new-ai-tech-heres-what-to-expect-in-2025" rel="noreferrer noopener">limited production of</a> its humanoid robot, Optimus, by late 2025, aiming for broader commercial availability in 2026. Nvidia supplies essential technology components to power Tesla&#8217;s robotics efforts.
Investors can gain exposure to Nvidia through VanEck Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SMH#NASDAQ">SMH</a>) and Fidelity MSCI Information Technology Index ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FTEC#NYSE">FTEC</a>).
Price Actions: NVDA stock is up 1.8% at $139.48 at the last check Monday.
Also Read:
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<li><a href="https://www.benzinga.com/government/regulations/24/12/42686698/meta-settles-israeli-job-ad-discrimination-case-for-1-million-report" target="_blank" rel="noreferrer noopener">Meta Settles Israeli Job Ad Discrimination Case For $1 Million: Report</a></li>
</ul>
Image via Shutterstock.

Equities

Nvidia Completes Run:ai Buyout: Details

Taiwan Semiconductor Manufacturing Co&#8217;s (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TSM#NYSE">TSM</a>) investment in Kaohsiung has been pivotal in driving the city&#8217;s development, the Taipei Times <a target="_blank" href="https://www.taipeitimes.com/News/biz/archives/2024/12/27/2003829174" rel="noreferrer noopener">cites</a> from Kaohsiung Mayor Chen Chi-mai&#8217;s interview on Monday.
The Taiwanese contract chipmaker targets five factories in Kaohsiung, a heavy industrial city.
The first plant will likely start commercializing by 2025 or 2026, six months ahead of schedule, as the company ramps up its production of advanced technology chips in Taiwan.
Also Read: <a target="_blank" href="https://www.benzinga.com/24/12/42644888/biden-administration-targets-chinese-firm-over-taiwan-semiconductor-chip-found-in-huawei-tech" rel="noreferrer noopener">Biden Administration Targets Chinese Firm Over Taiwan Semiconductor Chip Found in Huawei Tech</a>
The chipmaker&#8217;s initiatives have prompted the city government to set up four water recycling plants and ultra-high-voltage substation facilities in the Nanzih Technology Industrial Park to ensure a stable water and power supply.
Chen said that, in addition, Kaohsiung is building a new provincial highway and interchanges connecting Freeway No. 1 to boost Taiwan Semiconductor&#8217;s transportation network.
Chen said that semiconductor companies in Kaohsiung, Tainan, Chiayi County, and Pingtung County will all be nearby, which will help drive industry integration.
The company also remains committed to its geographical diversification efforts to help countries consolidate their semiconductor base.
In December,&nbsp;Taiwan Semiconductor showcased its <a target="_blank" href="https://www.benzinga.com/media/24/12/42514266/taiwan-semiconductor-unveils-20-billion-arizona-chip-fab-apple-named-key-customer" rel="noreferrer noopener">advanced chip fabrication plant</a> debut&nbsp;in Arizona, with Apple Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>) as its leading customer.
The project value has surged from $12 billion to $20 billion. The company plans to build two additional fabs on the site by the end of the decade, bringing the total investment to $65 billion.
International Data Corp&nbsp;expects&nbsp;Taiwan Semiconductor&nbsp;to&nbsp;command a 67%&nbsp;share of the global foundry market in 2025 as its&nbsp;AI&nbsp;and crypto technologies gain traction.
Taiwan Semiconductor stock has gained 100% year-to-date.
Investors can gain exposure to semiconductor stocks through the VanEck Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SMH#NASDAQ">SMH</a>) and the iShares Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SOXX#NASDAQ">SOXX</a>).
Price Action: TSM stock traded lower by 0.79% to $204.67 premarket at the last check on Friday.
Also Read:
<ul>
<li><a href="https://www.benzinga.com/media/24/12/42631016/taiwan-semiconductor-expands-in-japan-sony-and-denso-among-first-customers" target="_blank" rel="noreferrer noopener">Taiwan Semiconductor Expands in Japan: Sony and Denso Among First Customers</a></li>
</ul>
Image via Shutterstock

Emerging Markets

Taiwan Semiconductor Expands Domestically With 5 New Factories

As AI continues transforming industries and driving digital innovation, the demand for semiconductors is rising. With the sector poised for significant long-term growth, investing in fundamentally sound semiconductor ETFs like VanEck Semiconductor ETF (SMH), Invesco Semiconductors ETF (PSI), and SPDR S&P Semiconductor ETF (XSD) could be beneficial. Read on…. After a slow start in 2024, the semiconductor market is bouncing back, driven by the ever-growing demand for microchips, particularly due to the rise of artificial intelligence (AI). As a result, the time looks ripe to invest in strong semiconductor ETFs VanEck Semiconductor ETF (<a href="https://stocknews.com/stock/SMH/">SMH</a>), Invesco Semiconductors ETF (<a href="https://stocknews.com/stock/PSI/">PSI</a>), and SPDR S&amp;P Semiconductor ETF (<a href="https://stocknews.com/stock/XSD/">XSD</a>), which are poised to benefit from the industry's expansion.
Generative AI, in particular, has sparked massive investment across the tech sector, creating a surge in the need for semiconductors. The Semiconductor Industry Association (SIA) recently reported that global semiconductor sales <a href="https://www.semiconductors.org/global-semiconductor-sales-increase-20-7-year-to-year-in-november/">reached $57.80 billion in November</a>, up 20.7% year over year and 1.6% from October's $56.90 billion. It's clear that demand for chips is growing, and with the rise of AI, that momentum will only accelerate.
According to Gartner, the global semiconductor revenue is forecasted to <a href="https://www.gartner.com/en/newsroom/press-releases/2024-10-28-gartner-forecasts-worldwide-semiconductor-revenue-to-grow-14-percent-in-2025">grow by 14% in 2025</a>, reaching $717 billion. Meanwhile, the global semiconductor market is expected to reach $1.14 trillion by 2033, exhibiting a <a href="https://timestech.in/semiconductor-market-size-expected-to-surpass-usd-1137-57-bn-by-2033/">CAGR of 7.6%</a>. Given the compelling growth drivers in the industry, semiconductor ETFs are an appealing option for those looking to capture a share of the tech growth wave.
With that in mind, let's look at the fundamentals of the three <a href="https://stocknews.com/category/technology-equities-etfs/">Technologies Equities ETFs</a> picks, beginning with the third choice.
ETF #3: Invesco Semiconductors ETF (<a href="https://stocknews.com/stock/PSI/">PSI</a>)
PSI invests in stocks of companies operating across information technology, semiconductors, and semiconductor equipment sectors, and it tracks the Dynamic Semiconductor Intellidex Index. Invesco Capital Management LLC manages this fund.
With $772.10 million in <a href="https://www.investopedia.com/terms/a/aum.asp">assets under management</a> (AUM), its <a href="https://etfdb.com/etf/PSI/#holdings">top holdings</a> are Broadcom Inc. (<a href="https://stocknews.com/stock/AVGO/">AVGO</a>) with a 6.50% weighting in the fund, Lam Research Corporation (<a href="https://stocknews.com/stock/LRCX/">LRCX</a>) at 4.83% weight, followed by NVIDIA Corporation (<a href="https://stocknews.com/stock/NVDA/">NVDA</a>), and QUALCOMM Incorporated (<a href="https://stocknews.com/stock/QCOM/">QCOM</a>) with 4.77% and 4.72% weightings, respectively. The fund has a total of 31 holdings.
The ETF's expense ratio is 0.56%, compared to the category average of 0.59%. PSI fund outflows were $2.96 million over the past month and $54.99 million over the past year.
PSI pays an annual dividend of $0.08, which translates to a 0.14% yield at the current price level. The fund's dividend payouts have grown at a 5.6% CAGR over the past three years. Its four-year average yield is 0.32%.
Over the past year, PSI has gained 26.6% to close the last trading session at $59.55. The fund's <a href="https://www.invesco.com/us/financial-products/etfs/product-detail?audienceType=investor&amp;ticker=psi">NAV was $59.59</a> as of January 13, 2025.
PSI's <a href="https://stocknews.com/powr-ratings/">POWR Ratings</a> reflect its promising prospects. The ETF has an overall rating of B, which translates to a Buy in our proprietary rating system. The POWR Ratings are calculated by considering 118 different factors, with each factor weighted to an optimal degree.
The fund has an A grade for Trade and a B for Buy &amp; Hold and Peer. PSI is ranked #49 out of 119 stocks in the B-rated <a href="https://stocknews.com/category/technology-equities-etfs/">Technologies Equities ETFs</a> group. <a href="https://stocknews.com/stock/PSI/">Click here</a> to access all the PSI ratings.
ETF #2: VanEck Semiconductor ETF (<a href="https://stocknews.com/stock/SMH/">SMH</a>)
Van Eck Associates Corporation manages SMH. The fund invests in growth and value stocks of companies that are operating across the information technology, semiconductors, and semiconductor equipment sectors. It seeks to track the performance of the MVIS US Listed Semiconductor 25 Index.
As of January 10, SMH had $23.97 billion in assets under management and an <a href="https://www.vaneck.com/us/en/investments/semiconductor-etf-smh/overview/">NAV of $247.11</a>. Its expense ratio of 0.35% compares to the category average of 0.59%.
The fund's <a href="https://etfdb.com/etf/SMH/#holdings">top holdings</a> include NVDA with a 19.56% weight, Taiwan Semiconductor Manufacturing Company Limited (<a href="https://stocknews.com/stock/TSM/">TSM</a>) with a 12.55% weight, AVGO with a 9.58% weight, and ASML Holding N.V. (<a href="https://stocknews.com/stock/ASML/">ASML</a>) with a 5.06% weight. It has a total of 26 holdings.
SMH's trailing-12-month dividend of $1.07 yields 0.43% on the current price level, while its four-year average dividend yield is 0.65%. Its dividend payouts have grown at a 10.8% CAGR over the past three years.
SMH has gained 41.8% over the past year and 10.1% over the past nine months to close the last trading session at $244.64. Its fund inflows came in at $6.56 billion over the past year and $2.20 billion over the past six months.
SMH's bright prospects are reflected in its POWR Ratings. The ETF has an overall B rating, equating to a Buy in our proprietary rating system.
It also has a B grade for Trade and Buy &amp; Hold. It is ranked #43 out of 119 ETFs in the same B-rated group. <a href="https://stocknews.com/stock/SMH/">Click here</a> to access SMH's Peer grade as well.
ETF #1: SPDR S&amp;P Semiconductor ETF (<a href="https://stocknews.com/stock/XSD/">XSD</a>)
XSD seeks to invest in companies' stocks operating across information technology, semiconductors and semiconductor equipment, and semiconductors sectors. It tracks the performance of the S&amp;P Semiconductor Select Industry Index.
The fund has a total of 42 holdings. Its <a href="https://etfdb.com/etf/XSD/#holdings">top holdings</a> include AVGO with a 3.80% weighting, Allegro MicroSystems, Inc. (<a href="https://stocknews.com/stock/ALGM/">ALGM</a>) at 3.27%, followed by Astera Labs, Inc. and Marvell Technology, Inc. (<a href="https://stocknews.com/stock/MRVL/">MRVL</a>) with 3.23% and 3.22% weightings, respectively.
XSD has an expense ratio of 0.35%, lower than the category average of 0.59%. Over the past month, the fund's net outflow came in at $19.12 million.
XSD pays an annual dividend of $0.49, translating to a 0.20% yield at the prevailing price level. The fund's four-year average yield is 0.26%. Its dividend payouts have grown at a 28% CAGR over the past three years.
XSD has gained 16.2% over the past year to close the last trading session at $247.75. As of January 10, 2025, the fund had assets under management (AUM) of $1.38 billion and an <a href="https://www.ssga.com/us/en/intermediary/etfs/spdr-sp-semiconductor-etf-xsd">NAV of $250.18</a>.
It's no surprise that XSD has an overall A rating, which equates to a Strong Buy in our proprietary rating system. In addition, it has an A grade for Peer and Trade and a B for Buy &amp; Hold. XSD is ranked #16 in the same Technology Equities ETFs group. Get all XSD ratings <a href="https://stocknews.com/stock/XSD/">here</a>.
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<hr />
SMH shares rose $1.86 (+0.76%) in premarket trading Tuesday. Year-to-date, SMH has gained 1.02%, versus a -0.80% rise in the benchmark S&amp;P 500 index during the same period.
<hr><div style="clear:both;"></div> <h2>About the Author: Shweta Kumari</h2> <img src='https:/wp-content/uploads/2022/03/Shweta-Kumari_Image-2.jpg' style="float:left; padding:5px;width:125px;">Shweta's profound interest in financial research and quantitative analysis led her to pursue a career as an investment analyst. She uses her knowledge to help retail investors make educated investment decisions.<a href="https://stocknews.com/authors/?author=shweta-kumari">More...</a>The post <a href=https://stocknews.com/news/smh-psi-xsd-3-semiconductor-etfs-capturing-tech-growth/>3 Semiconductor ETFs Capturing Tech Growth</a> appeared first on <a href=https://stocknews.com/>StockNews.com</a>

3 Semiconductor ETFs Capturing Tech Growth

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