The Smartest Growth ETF to Buy Right Now -- and It's Up 50% in 2026
Semiconductor stocks are 20% off of their highs. That might not be a bad thing.
Overview
The VanEck Semiconductor ETF (NASDAQ: SMH) is down around 20% from its high reached just a month ago. The artificial intelligence (AI) trade has cooled substantially as investors look for tangible positive results from these companies, not just aggressive spending on AI development.
That's what's partially caused Alphabet's and Meta Platforms' stocks to crater over the past few weeks. They've kept their foot on the gas with AI spending as free-cash-flow growth turns negative. Folks seem to be getting nervous about investing in companies that may be getting out over their skis.
Details
Semiconductor stocks have gotten dragged down alongside these names. But that doesn't necessarily mean they're worth avoiding. In fact, if you follow the Warren Buffett mantra to "be greedy when others are fearful," it might actually be the smartest trade to make right now.
Source
Originally published at www.fool.com.