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SMH · Analysis updated Nov 5, 2026, 9:50 AM ET
Why is VanEck Semiconductor ETF (SMH) stock moving?
SMH is in a sharp drawdown. It closed at 504.27 on Nov 4, down about 11% from the 567.67 close on Oct 28. The slide began Oct 30, when Intel's weak Q4 guidance of $15-16B against a $17B consensus triggered a roughly 7% one-day drop in the Philadelphia Semiconductor Index. Selling resumed after the US midterm elections, as investors rotated out of AI-linked chips. The SOX hit a six-month low, and SMH was down more than 3% premarket on Nov 5. Korea's KOSPI was halted, and SK Hynix and Samsung fell sharply. Volume has been elevated on the down days (388K on Oct 30 and 319K on Nov 4, against a typical 150-230K). The fundamentals still look supportive. AMD beat on Q3 with revenue up 45% to $13.4B and guided to more than 80% revenue growth in 2027. Memory pricing remains strong, and Nvidia trades at a low forward multiple. Even so, the market did not reward the AMD beat, which points to worries about the durability of AI spending, plus rotation and crowded positioning. Analyst views are split between a further 10-12% drop and an overreaction. Nvidia reports on Nov 17, a key upcoming catalyst. Near-term momentum is clearly negative.
News behind the analysis
- Semiconductor ETF Drops Over 3% as Chipmakers Extend Losses in US FuturesA rotation out of chip stocks extended into a second day. A semiconductor ETF fell more than 3% premarket on Nov 5.
- Asia stocks mixed as chip rout triggers KOSPI trading haltKOSPI closed 5.3% lower after a trading curb. The Philadelphia Semiconductor Index fell 3.1% overnight to a six-month low.
- Philadelphia Semiconductor Index Plunge Drags Taiwan Stocks Down Over 900 PointsThe SOX fell 3.13% to 10,268.66, a six-month low, while the Dow surged after the midterm results.
- Micron Technology Stock Slides Again ThursdayChip and memory stocks fell on AI-related selling. Dan Ives warned of a further 10-12% drop in chips, while Tom Lee called the selloff an overreaction.
- South Korean Chip Selloff Triggers Trading Halt on Main BourseA selloff in South Korean chip stocks triggered a temporary halt on the main exchange.
- Asian Markets Rise as South Korea Kospi Slides on Chip SelloffSamsung fell 5.7% and SK Hynix fell 7.4% as AI-exposed chip stocks were sold.
- Semiconductor Sell-Off: The Best Chip Stocks to Buy Right NowChips fell sharply on Oct 30 after Intel's weak guidance. The PHLX Semiconductor index dropped 7% in a single session.
- AI Chip Stocks Rise Despite Democratic Win; AMD's Strong Forecast Fuels OptimismAMD's Q3 revenue rose 45% to $13.4B and adjusted EPS rose 74% to $2.09.
- Intel Drops 5%, NVIDIA Retreats 2% After AMD Earnings BeatAMD's record quarter did not lift its shares, and most AI chip stocks lagged the broader rebound. AMD's data center revenue rose 97% to $8.5B.
- NVIDIA Rises 3% Despite AI CEO's Warning on Chinese Chip CompetitionNvidia trades at 17x forward earnings, a five-year low, according to the article. Chips bounced on Nov 3 before AMD's report.