27% profits every 20 days?
This is what Nic Chahine averages with his options buys. Not selling covered calls or spreads... BUYING options. Most traders don't even have a winning percentage of 27% buying options. He has an 83% win rate. Here's how he does it.
The recent artificial intelligence boom has reached different sectors, industries and corporations, with semiconductor stocks taking the lead.
Key Figures From The 2023 Semiconductor Boom
- The VanEck Semiconductors ETF (NASDAQ:SMH), an exchange traded fund that invests in the 25 largest chipmakers, has posted a 44% rise year-to-date, with a 17% increase recorded in the last month alone.
- The VanEck Semiconductors ETF stands out due to the exceptional market breadth. Every stock within the ETF is generating positive returns in 2023, reflecting a widespread rally across the chipmaking industry.
- This remarkable rise has driven the fund's assets under management to new highs, hitting $9.54 billion at the end of May. This exceeds the previous high of $9.3 billion achieved in March 2022.
In terms of investor interest, May 2023 proved to be a particularly positive month for the VanEck Semiconductors ETF, which attracted substantial net inflows of $463 million.
NVIDIA Corp. (NASDAQ:NVDA) stands out as a significant driver of the SMH's performance in 2023, with its shares soaring 164% year-to-date. Nvidia alone has contributed over 15 percentage points to the overall performance of the ETF. The company briefly hit a $1-trillion market cap May 30.
Notably, NVIDIA's growth has far outpaced its closest competitor, Advanced Micro Devices, Inc. (NASDAQ:AMD), which has risen 85% during the same period.
Other notable contributors to the industry's performance include Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM) and Broadcom, Inc. (NASDAQ:AVGO).
The weakest performer among chipmakers was QUALCOMM Inc. (NASDAQ:QCOM), which has risen 5% year-to-date.
The 12-month forward price-to-earnings ratio of this ETF stands at 22.4x.
Chart: VanEck Semiconductor ETF Price Chart
Read also: EXCLUSIVE: 'We're The Original AI Company,' Wix Chair Tells Benzinga After Earnings Beat
Photo via Shutterstock.
27% profits every 20 days?
This is what Nic Chahine averages with his options buys. Not selling covered calls or spreads... BUYING options. Most traders don't even have a winning percentage of 27% buying options. He has an 83% win rate. Here's how he does it.
ENTER TO WIN $500 IN STOCK OR CRYPTO
Enter your email and you'll also get Benzinga's ultimate morning update AND a free $30 gift card and more!