One really must congratulate Nvidia. Another quarter, another triumph. The numbers, darling, are positively vulgar. A 73% jump in revenue to $68.1 billion? And a profit margin of 58%? It’s all frightfully efficient, isn’t it? Though, frankly, one begins to suspect the entire affair is becoming rather…predictable.
The market, of course, merely shrugged. A mere 3% uptick after hours, quickly evaporating like a particularly weak gin fizz. One wonders if investors are simply jaded. Or perhaps they’ve developed a taste for genuine drama, and a relentless surge in profits is simply… tiresome.
Nvidia, you see, is de rigueur. Everyone knows it’s the leading AI play. Which rather takes the fun out of things, doesn’t it? It’s like attending a party where you know precisely who will monopolize the conversation. A market capitalization approaching $5 trillion does rather limit one’s expectations for a sudden, thrilling leap.
However, there is a rather clever alternative. The VanEck Semiconductor ETF (SMH 3.32%). A diversification play, you understand. Rather like spreading one’s wagers at the races. One doesn’t put all one’s eggs in a single, albeit remarkably gilded, basket.
Why SMH Might Be The Smarter Bet
The SMH ETF, you see, holds a collection of the usual suspects. Nvidia, naturally. But also Taiwan Semiconductor (TSM 2.86%), Broadcom (AVGO 3.16%), Micron (MU 3.20%), and ASML (ASML 4.15). A perfectly respectable portfolio, comprising roughly 50% of the fund. A bit heavy on the tech, perhaps, but one can’t have everything.
Nvidia dominates data center GPUs, Taiwan Semi manufactures the chips, Broadcom handles the networking, Micron the memory, and ASML… well, ASML makes the equipment that makes it all possible. A tidy arrangement, wouldn’t you agree? Each with its own little niche, and each benefiting from the general AI frenzy.
The advantage, darling, is that one isn’t solely reliant on Nvidia. Micron, for instance, has tripled in the last six months. ASML has doubled. One might even suggest they have a bit more…potential. Nvidia is, after all, already rather large. And a large thing rarely moves with quite the same agility as a smaller, more nimble one.
Nvidia’s success will undoubtedly benefit the lot, with the possible exception of Broadcom, who seem perfectly capable of muddling through on their own. But other chip stocks offer a more…spirited upside. They’re simply not burdened by quite the same expectations.
The AI Boom: Still Perfectly Viable
One hears whispers of an AI bubble. Utter nonsense, of course. Nvidia’s results prove it. The boom is alive and well, and showing no signs of flagging. Though, one does hope it maintains a certain level of restraint. Excess, darling, is so dreadfully vulgar.
The SMH ETF isn’t cheap, mind you. A price-to-earnings ratio of 45 is…ambitious. But it offers exposure to a wide range of AI stocks and, dare one say, a reasonable chance of owning the next stock that will double in the next six months. With AI spending still soaring, one anticipates a rather satisfactory outcome. It’s a gamble, naturally. But then, what isn’t?
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2026-02-27 05:52