The semiconductor sector has shown remarkable resilience this year, with the VanEck Semiconductor ETF (SMH) surging 30% over the past month and 40% year-to-date, despite earlier volatility that saw a $1 trillion loss in AI stocks. Major tech players like Amazon, Alphabet, and Meta have signaled significant capital expenditures for AI infrastructure by 2026, fueling investor interest in semiconductor stocks, which are pivotal to this growth.

The SMH ETF provides a diversified play on the semiconductor industry, holding top companies like Nvidia, Taiwan Semiconductor, and Broadcom, which are all positioned to benefit from the ongoing AI boom. With 78% of its holdings based in the U.S., the ETF offers exposure to key players in the AI hardware market, making it an attractive option for investors looking to capitalize on this trend without the risk of betting on individual stocks.

For market professionals, the VanEck Semiconductor ETF represents a straightforward investment vehicle to navigate the AI-driven semiconductor landscape, boasting a competitive expense ratio of 0.35% and an impressive historical return of 26.92%.

Source: fool.com