Exposure to Nvidia and other top chip stocks

It’s hard to look beyond Nvidia (NASDAQ:NVDA) these days, but it’s important to remember that there are many other great semiconductor (chip) stocks out there as well. The VanEck Semiconductor ETF (NASDAQ:SMH) allows investors to gain exposure to both Nvidia and other attractive opportunities in the semiconductor space.

I am bullish on SMH due to its strong portfolio of blue-chip stocks semiconductor stocks, which is performing well and has significant long-term growth potential, as well as its incredible track record of generating strong returns for its holders. We have SMH cutlery previously; since then, it has performed well and continues to look like an attractive long-term opportunity.

What is the strategy of the SMH ETF?

SMH is the largest dedicated semiconductor ETF. According to sponsor VanEck, SMH invests in “the MVIS US Listed Semiconductor 25 Index (MVSMHTR), which is intended to track the overall performance of companies involved in semiconductor production and equipment.”

VanEck highlights the fact that these are highly liquid stocks, industry leaders and companies with global reach.

Compelling Semiconductor Stock Portfolio

SMH owns 26 stocks and its top 10 holdings represent 76.2% of the fund. Below you will find an overview of Top 10 SMH Stocks using TipRanks’ funds tool.

While the fund is not particularly diversified, it provides investors with substantial exposure to Nvidia (which has a large 24.6% weighting) and other top semiconductor stocks, including Taiwan Semiconductor (NYSE:TSM), Broadcom (NASDAQ:AVGO), Qualcomm (NASDAQ:QCOM) and more.

Without Nvidia’s 209.6% gain over the past year, it’s likely we’d be hearing more about Broadcom and its 111.8% gain. But the semiconductor and software infrastructure giant is now poised to become one of the world’s ten largest companies and deserves all the attention on its own. The stock is a long-term winner that has generated an incredible total return of 3,168% over the past decade.

It is also an underrated dividend growth stock which has increased its dividend payout for 13 consecutive years and has grown that payout at an impressive CAGR of 17.5% over the past five years. Additionally, like Nvidia, Broadcom has its own stock split coming.

The company recently announced that it would run a 10 for 1 stock split, which will go live on July 12. While stock splits don’t necessarily make a fundamental difference, they can create significant interest and momentum in a stock, as we recently saw with Nvidia. They can also make stocks more accessible to small and retail investors.

The story continues

Besides Broadcom, Taiwan Semiconductor is another of several attractive chip stocks among SMH’s top holdings.

Taiwan Semiconductor is the world’s largest and most advanced chip manufacturer. Major semiconductor companies like Nvidia, Broadcom, Qualcomm and others are coming to Taiwan…