After a brief dip this summer, semiconductor stocks are heating up again, as mainstays in the space like Micron (MU) post blowout earnings due to strong AI-related demand. The memory chip giant reported scorching 93.3% year-over-year revenue growth, and guided to record revenue of $8.7 billion for the upcoming quarter, well above analyst expectations.
Micron’s results gave a jolt to the sector and illustrate that AI demand is still strong. Investors can achieve diversified exposure to the semiconductor sector as a whole via an ETF, and there are many funds with different approaches to the space.
Let’s take a look at two popular semiconductor ETFs with different strategies — the Van Eck Semiconductor ETF (SMH) and the First Trust Nasdaq Semiconductor ETF (FTXL). Ultimately I land on SMH as being the best semiconductor ETF for investors.
Van Eck Semiconductor ETF (SMH)
SMH is the…
