Semiconductor stocks have been on a tear this year as investors bet on the promise of artificial intelligence and rotate back into technology names. This backdrop puts the VanEck Semiconductor ETF up about 45% and on track for its best first half on record. Its closest outperforming six-month stretch dates to 2003, when it surged 27.45% during the first half. It finished that year with a gain of 87.31%, its highest on record.
Many within the investing community view Nvidia as the dominant chipmaker to beat, especially after it revealed a blowout quarter and guidance, spurred by booming demand for the technology . Following this run up, some Wall Street analysts are bracing for a pullback in shares over the short term, but remain confident in the long-term growth opportunity — even with the stock's steep valuation . The average price target implies nearly 15% upside from Thursday's close.