Should I buy SMH stock in Singapore in 2025?

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At HelloSafe, our expert has been tracking the performance of SMH for over three years. Every month, hundreds of thousands of users in SG trust us to decipher market trends and identify the best investment opportunities. Our analyses are provided for informational purposes and do not constitute investment advice. In accordance with our ethical charter, we have never been, and will never be, compensated by SMH.

What is SMH?

What is the price of SMH stock?

The price of SMH stock is rising this week.
The current price is $283.62, up $2.37 (+0.84%) over the last 24 hours, and showing a +2.32% gain for the week.
SMH’s market capitalisation stands at $27.33 billion, with a three-month average daily trading volume of 8.31 million shares.
The P/E ratio is 37.19, the dividend yield is 0.45%, and the stock has a beta of 1.71.
Given this active momentum and relatively high volatility, SMH may appeal to investors seeking growth in the dynamic semiconductor sector.

Our full analysis of the SMH stock

We have rigorously reviewed SMH’s latest financial reports, price action over the last three years, and competitive positioning. By combining leading technical signals, updated financial indicators, sector trends, and comparative data—filtered through our proprietary algorithms—we present a thorough assessment of SMH’s potential. So, why might SMH stock once again become a strategic entry point into the global semiconductor sector in 2025?

Recent performance and market context

SMH has continued its impressive multi-year run, maintaining a strong upward trajectory with a current price of $283.62 as of July 2025. The ETF advanced +2.32% weekly and +15.86% over the past six months, outperforming many tech sector benchmarks and major global indices. Year-to-date, SMH has delivered +17.25%, reaffirming its status as a bellwether for semiconductor growth. Record inflows in 2025 have driven its market capitalization to $27.33 billion, while the fund recently notched a new all-time high at $285.19. These dynamics, combined with consistent market demand for AI, advanced computing, and next-generation electronics, have fuelled strong investor optimism. Notably, Q2 2025 saw an exceptional +32% quarterly performance, propelled by robust earnings from core holdings such as NVIDIA and Taiwan Semiconductor, and amplified by the recent global surge in artificial intelligence investments.

The macroeconomic backdrop for semiconductors remains overwhelmingly positive. Global supply chains continue to recover, and secular demand for chips in AI, data centers, 5G, IoT, and clean energy transforms the sector into a powerful driver of the market cycle. Despite momentary volatility driven by US-China tensions or cyclical corrections, the sector’s fundamental resilience has repeatedly translated into capital inflows. In this context, SMH stands out as a high-conviction vehicle for Singapore-based investors seeking both sectoral dynamism and US-listed liquidity.

Technical analysis

SMH’s technical profile reveals favorable conditions for further upside. The ETF’s Relative Strength Index (RSI) sits at 75.31, in the overbought zone, often indicative of pronounced upward momentum in strong bull cycles. The MACD at 10.25 underlines recent buying pressure, and all major moving averages (20-day: $266.84, 50-day: $245.39, 100-day: $233.53, 200-day: $240.27) flash robust buy signals—each positioned below the current price and confirming the ETF’s powerful uptrend.

Golden cross patterns have emerged, reinforcing medium- and long-term bullish structures. Strong support is evident at $282.22, with momentum buyers using minor pullbacks as entry points. While recent oscillators warn of short-term consolidation, the prevailing structure overwhelmingly favors sustained strength, with upside resistance at $285.10, $286.59, and $287.98—levels likely to be tested should bullish sentiment continue. In sum, SMH’s technical setup suggests any correction could provide a compelling opportunity for accumulation.

Fundamental analysis

• Outstanding revenue growth and profitability among its constituents, led by NVIDIA, TSMC, Broadcom, and AMD, which collectively comprise over 50% of the portfolio.
• A forward-looking annual growth rate aligned with the semiconductor industry’s 8–12% trajectory, supported by structural mega-trends spanning AI, automotive, digital infrastructure, and high-performance computing.
• An attractive Price/Earnings ratio of 37.19, especially when considered alongside current growth rates and future earnings acceleration from the AI revolution, persistent data center build-out, and global consumer digitization.
• Robust dividend culture (yield of 0.45%) relative to technology ETFs, with upside potential as mature industry players increase distributions.
• Sustained strategic expansion, with top holdings continuing to dominate global market share and invest heavily in innovation, capital expenditures, and R&D.
• Defensive benefits from ETF diversification, reducing idiosyncratic single-stock risk while maximizing upside from sector-wide catalysts.

These characteristics underscore SMH’s relevance as a core holding for investors who value a blend of structural growth and risk mitigation within the technology sphere.

Volume and liquidity

Liquidity and trading volume are fundamental to price discovery and investor entry/exit flexibility—areas where SMH excels. With an average three-month daily volume of 8.31 million shares, SMH consistently ranks among the most traded technology sector ETFs. This liquidity provides tight bid/ask spreads even in periods of heightened volatility, while the $27.33 billion market cap ensures robust institutional participation. The fund’s large, diversified float supports dynamic valuation, facilitating swift capital deployment as sentiment or sector trends change. For Singapore institutions or active investors, this offers a superior vehicle for rapid positioning or longer-term allocation compared to less liquid alternatives.

Catalysts and positive outlook

• The ongoing explosion of investment into artificial intelligence, from accelerated chip launches to unprecedented demand from hyperscale data center operators, directly benefits the ETF’s core holdings.
• Key product rollouts and process advancements—such as advanced GPU architectures, next-gen semiconductor manufacturing (3nm and below), and strong order books from cloud service providers—fuel earnings visibility.
• Favorable regulatory and policy direction internationally, with supportive chip subsidies, “reshoring” efforts in the US and Asia, and new export markets for semiconductors.
• ESG initiatives and technological leadership, as leading holdings within SMH accelerate commitments to sustainability, energy-efficient chip designs, and greater supply chain transparency.
• Inorganic growth opportunities, with mergers and acquisitions in an industry segment notorious for transformative deals, poised to provide upside surprises.
• Structural demand from automotive digitization (autonomous vehicles, connected systems), the continuing 5G buildout, the massive upgrade cycle for personal computing devices, and a new wave of IoT and smart infrastructure investment across Asia.

The consensus price target of $368.71 (+30%) from analysts further strengthens the argument for a positive outlook, while sector risk is actively monitored given the ETF structure.

Investment strategies

The current technical and fundamental setup supports multiple entry points for both proactive and patient investors. Arguments for each time horizon include:

• Short-term: SMH sits just below a historic high and may offer tactical opportunities on minor pullbacks toward support at $282.22. For nimble traders, the mix of high beta (1.71) and liquidity offers excellent trading conditions for capturing volatility as the sector consolidates or surges with new catalysts.
• Medium-term: Investors can view upcoming technology earnings, AI hardware launches, and macro events as trigger points for renewed momentum. The ETF’s broad exposure to the world's semiconductor leaders establishes it as an ideal “sector call” for those anticipating the next leg up in the global tech cycle.
• Long-term: For investors with a horizon of several years, SMH’s alignment with multiple disruptive trends—AI, cloud, EV, and digital transformation—suggests that the ETF could be the backbone of a growth-focused portfolio. The deep moat created by the sector’s high capital intensity, R&D barriers, and global integration is likely to underpin value for years to come.

For all timeframes, adding during periods of mild correction or sideways movement appears particularly advantageous, as the ETF’s technical structure and underlying business strength consistently attract new inflows at lower prices.

Is it the right time to buy SMH?

SMH combines the ideal ingredients for a sector leader: persistent and robust uptrend, distribution of risk across the best-performing semiconductor companies, attractive structural growth drivers, and proven resilience in volatile markets. With a unique blend of innovation exposure—anchored to giants revolutionizing AI, data centers, and advanced electronics—SMH’s value proposition has rarely been more compelling. The current valuation remains justified by accelerating revenue and earnings growth among all major constituents, while high liquidity assures stability for institutional and retail investors alike.

Against this backdrop, and with multiple catalysts emerging on the horizon, SMH seems to represent an excellent opportunity for investors seeking dynamic exposure to technology’s most promising growth engines. The marked technical strength, combined with extraordinary fundamentals and the ever-intensifying demand for semiconductors worldwide, have the ETF poised for another bullish phase. While short-term volatility should be actively managed, and macro/geopolitical risks accounted for, the weight of evidence supports a constructive stance.

For Singapore investors looking to participate in one of the defining secular trends of our era—with the agility of ETF trading and the power of global innovation—SMH may well be at the threshold of its next major advance. The coming quarters are likely to reveal new record highs as the sector continues to shape both technology and financial markets on a worldwide scale.

How to buy SMH stock in Singapore?

Buying SMH stock online is straightforward and secure when you use a regulated broker. Investors can choose between two main methods: buying SMH “spot” for direct ownership and potential dividends, or trading Contracts for Difference (CFDs) to speculate on price movements with leverage. Both options offer smooth access and modern tools for Singapore investors. To help you make the right choice, a broker comparison is available further down the page.

Spot buying

Cash purchase of SMH stock means buying real shares on the stock exchange, typically through a broker who charges a fixed commission per order, usually SGD 5–10 for Singapore-based brokers.

Example of a gain scenario

If the SMH share price is $283.62 USD, you can buy around 3 shares with a $1,000 stake, including a brokerage fee of around $5.

If the share price rises by 10%, your shares are now worth $1,100.

Result: +$100 gross gain, i.e. +10% on your investment.

Trading via CFD

CFD trading lets you speculate on the price of SMH shares without owning the actual stock. Fees generally include a spread (the difference between buy and sell price) and, if the position is held overnight, daily financing costs.

Example of a CFD Gain with Leverage

You open a CFD position on SMH shares, with 5x leverage. This gives you a market exposure of $5,000.

✔️ Gain scenario: If the stock rises by 8%, your position gains 8% × 5 = 40%.

Result: +$400 gain, on a bet of $1,000 (excluding fees).

Final advice

Before investing, compare the fees, currency conversion costs and conditions of different brokers to ensure you are getting the best deal. The best method depends on your goals: choose cash buying for long-term investment, or CFDs if you want to trade with leverage. A comparator can be found further down the page.

Our 7 tips for buying SMH stock

The latest news about SMH

SMH hits new all-time high at $285.19, driven by robust semiconductor and AI sector demand. This record price, reached in early July 2025, results from sustained investor optimism around the global expansion of artificial intelligence and its reliance on advanced semiconductors, a trend keenly monitored by Singaporean tech investors and fund managers.

Year-to-date, SMH posts a strong performance of +17.25%, outpacing the broader technology sector. With its diversified exposure to top chipmakers such as NVIDIA and Taiwan Semiconductor, the ETF continues to attract professional capital in Singapore seeking resilient growth and high liquidity within the US-dominated semiconductor space.

The recent Q2 2025 saw SMH achieve an impressive +32% quarterly gain on the back of stellar results. Earnings beats and raised guidance from major constituents like NVIDIA and TSMC have been especially impactful, with Southeast Asian analysts highlighting the relevance for regional data centre and electronics manufacturing growth.

Technical indicators show SMH is in a bullish long-term trend, with all major moving averages signaling ‘buy.’ The ETF’s price trading well above the 20, 50, 100, and 200-day simple moving averages gives confidence to institutional asset allocators in Singapore, although short-term oscillators now indicate overbought levels.

Positive sector outlook for semiconductors is reinforced by continued growth in AI, IoT, and EV adoption worldwide. Singapore’s financial community, with interests in global technology and supply chains, views these long-term structural drivers as highly favourable for SMH, supporting ongoing inflows and portfolio allocations.

FAQ

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.