The Chip-Chomping ETF

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Now, listen closely, because this is about numbers, and numbers, unlike Brussels sprouts, can be quite exciting. Shares of the VanEck Semiconductor ETF – we’ll call it the Chip-Chomper, shall we? – gobbled up a rather splendid 12% in January. A proper feast, that was. The S&P 500, a rather dull fellow by comparison, managed a mere 1.5%. Honestly, it’s like comparing a racing snail to a cheetah.

It’s wobbled a tiny bit in February, mind you, but still sits pretty with an 11.5% gain year-to-date. The broader market? Still trailing behind, looking rather glum. It’s as if the Chip-Chomper has a secret stash of sugary treats, while everyone else is stuck with sawdust.

A Smorgasbord of Silicon

Let’s peek inside the Chip-Chomper’s belly, shall we? It’s stuffed with 25 different companies, but a few greedy giants hog most of the goodies. Here’s the top ten, as of February 5th, listed from the biggest glutton to the slightly less enormous:

  1. Nvidia (NVDA +3.59%), the king of the AI chips – a rather clever fellow, if you ask me.
  2. Taiwan Semiconductor Manufacturing Co. (TSMC), the world’s biggest chip foundry – they churn out the chips like a factory of tiny, metallic sweets.
  3. Broadcom, a chip and software maker – a bit of a jack-of-all-trades, but quite profitable.
  4. Micron Technology, a memory chip specialist – they remember everything, which is more than I can say for some people.
  5. ASML Holdings, a chip equipment maker – they build the machines that build the chips. A bit meta, isn’t it?
  6. Lam Research, another chip equipment maker – they help the machines build even more chips. The cycle never ends!
  7. Texas Instruments, a chipmaker – reliable, if a bit boring.
  8. Intel, a chipmaker – used to be the king, now a bit grumpy about it.
  9. Applied Materials, a chip equipment maker – more machines!
  10. Analog Devices, a chipmaker – they make chips for all sorts of things.

In January, three of these companies had gains of over 30%, and two over 20%. That’s a proper feeding frenzy! It powered the Chip-Chomper’s performance, naturally.

Micron, that clever little memory chip specialist, was the star of the show, soaring 45.4%. They reported some jolly good earnings in December, and the stock kept climbing. Seems everyone needs more memory these days, especially for all those silly cat videos.

Their revenue surged 57% to $13.64 billion, and earnings skyrocketed 167% to $4.78. The cloud memory unit doubled in revenue and margin. Quite a performance, even for a company that remembers everything.

ASML and Lam Research jumped 33% and 36.4% respectively, thanks to some rather impressive results from TSMC. It’s like giving a baker a mountain of flour – they’re bound to make something good.

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Nvidia: The Biggest Bite

Nvidia, that clever chip fellow, is the largest holding in the Chip-Chomper, accounting for 18.3% of its value. TSMC comes in second with 10.8%. So, when Nvidia reports earnings on February 25th, everyone will be watching. It could be a significant catalyst for the Chip-Chomper, a proper jolt of energy.

They’re guiding for revenue of $65 billion, up 65% year over year, and adjusted EPS of $1.50, up 69%. A rather impressive feast, wouldn’t you say?

The Best AI ETF? Elementary, My Dear Watson

Last January, I said the best AI-focused ETF isn’t one with “AI” in the name. It’s the VanEck Semiconductor ETF. And I still believe it. It’s like trying to find the sweetest plum in a basket of turnips. You know it’s there, you just have to look.

Over the past year, this ETF returned 62.2%, while the S&P 500 managed a measly 15.4%. It’s a big winner over the long haul, too. A proper, satisfying investment, wouldn’t you agree?

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2026-02-09 20:44