| | | SMH rout: DeepSeek AI shakes chip ETF to worst loss in 5 years - how holdings fared
Jan. 27, 2025 6:01 PM ET
By: Carla Mozee, SA News Editor
 William_Potter
The VanEck Semiconductor ETF (NASDAQ: SMH) finished Monday with its steepest decline in nearly five years, as Chinese startup DeepSeek ignited AI competition worries and a selloff in chip stocks and the tech sector overall.
The largest semiconductor ETF by AUM (NASDAQ: SMH) fell 9.8% to $235.81, the lowest close since September. The loss was the sharpest since March 2020, when the fund tumbled 14% in one session as markets grappled with the escalation of the COVID pandemic.
Monday's session ended with the fund’s largest holding, Nvidia (NASDAQ: NVDA), losing $589B in market cap. Investors were rattled by a surge in downloads of DeepSeek’s AI chatbot, surpassing OpenAI’s ChatGPT on the App Store. DeepSeek last week unveiled its R1 large language model, and the ~$6M cost attached to its development spooked tech investors, as American companies have poured billions of dollars into their products.
VanEck Semiconductor ETF’s (NASDAQ: SMH) trading volume spiked to 21.6M shares on Monday, compared with a three-month average of 5.6M, according to Capital IQ data.
Here’s how the $25.8B ETF’s 10 largest holdings performed Monday, following by Seeking Alpha’s proprietary Quant Ratings:
- Nvidia (NASDAQ: NVDA) – Daily % loss: -16.97%. SA Quant Rating: 3.49
- Taiwan Semiconductor ( TSM) - Daily % loss: -13.3%. SA Quant Rating: 4.94
- Broadcom ( AVGO) - Daily % loss: -17.4%. SA Quant Rating: 3.48
- ASML ( ASML) - Daily % loss: -5.8%. SA Quant Rating: 3.15
- Applied Materials ( AMAT) - Daily % loss: -6.5%. SA Quant Rating: 3.09
- Qualcomm ( QCOM) – Daily % loss: -0.5%. SA Quant Rating: 3.30
- AMD ( AMD) - Daily % loss: -6.4%. SA Quant Rating: 3.09
- Micron ( MU) - Daily % loss: -11.7%. SA Quant Rating: 3.27
- Texas Instruments ( TXN) - Daily % gain: +0.8%. SA Quant Rating: 3.03
- Analog Devices ( ADI) - Daily % loss: -0.9%. SA Quant Rating: 3.03
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