It is not friendly to semiconductor inventory in early 2025. Vaneck semiconductor ETF (SMH) has dropped by more than 9% so far. It has lost about 11% in the past month. This is in stark contrast to the fund’s performance in the past two years. SMH rose 38.5% in 2024 and 72.3% in 2023 as investors loaded semiconductor stocks to take advantage of the boom in artificial intelligence. This year’s move has led to SMH’s bearish chart pattern. The fund’s 50-day moving average this week is below its 200-day peers, forming a horrible death cross. Technical analysts see this phenomenon as a sign of further decline. This marks the first time that SMH has formed a death cross in two years. The group is struggling with some AI profits struggling with investors, while global trade tensions are rising. This week, the U.S. imposes tariffs on Canadian, Mexico and China imports. Canada and China retaliate with their own taxes, even though Mexico received a month of probation from its duties. For the semi-finals, it is disturbing that even with chips assembled in the United States, many of the components used are imported, said Chris Miller, a professor at Tufts Fletcher. “The complexity of the supply chain makes it very, very difficult to formulate tariff policies around vans, which is why the industry hopes nothing changes at all – because they are around the assumption that you can move goods back and forth when you are uncertain of this type of uncertainty,” Miller said Thursday on CNBC’s “Squawk Box.” Look at the worst performing SMH members this week (as of 4 p.m.): Marvell Technology: -21.3% Intel: -12.6% NVIDIA: -11.5% Broadcom: -10% of semiconductors: -6.7% – -6.7% – CNBC’s Nick Wells contributed the report.
Chip stocks have just formed a worrying chart pattern | Real Time Headlines
RELATED ARTICLES