The VanEck Semiconductor ETF (SMH) remains up roughly 75-83% over the past year, but has dropped nearly 18% in the last month alone. The pullback is driven by weak AI chip guidance from Broadcom, a memory chip price crunch, reports that China is closing the gap on chip-making technology, and a projected sharp decline in smartphone demand. The fund’s top holdings include Nvidia, TSMC, Broadcom, AMD, and ASML, making it essentially a bet on the biggest names in AI hardware. Sonal Bhutra decodes the move.