## Is the chip ETF or AI the best way to get on board?

This year, semiconductor stocks have become the main players in the bull market, with the VanEck semiconductor ETF (SMH) rising 38% in 2025, far surpassing the Nasdaq's 17% increase. Why?

**The core logic is simple**: Instead of betting on whether a single AI company will succeed, it is better to buy the entire industry chain. This ETF holds 25 top U.S. chip companies, covering almost all aspects of AI infrastructure, from NVIDIA's GPUs, AMD's CPUs, to TSMC's foundry capacity.

**Position Overview**：
- NVIDIA (18.5%): The king of GPUs for AI training
- TSMC (9.5%): A major manufacturer that provides foundry services for NVIDIA.
- Broadcom (8.1%): The AI accelerator supplier just signed by OpenAI
- Micron (6.8%): AI memory supplier
- AMD (6.6%): CPU supplier

These five stocks account for nearly half of the ETF weight.

**The rate is only 0.35% per year** (only 35 for 10,000), which is much cheaper than many specialized ETFs.

**What does the future look like?** The global AI market is expected to surge from $279 billion in 2024 to $3.5 trillion within five years, with a CAGR of 31.5%. Chips, as the infrastructure for AI, are a stable growth engine in the long run.

Of course, short-term fluctuations are inevitable, but from the perspective of compound interest, holding this kind of infrastructure ETF for the long term is much more reliable than betting on a single AI application company.