Monitor the Semiconductor Industry

Track the SMH ETF and sector dynamics that create powerful tailwinds or headwinds for NVDA

Why SMH ETF Matters for NVDA Trading

The VanEck Semiconductor ETF (SMH) represents the broader semiconductor sector performance and serves as a crucial leading indicator for NVDA movements. Understanding sector-wide trends helps predict whether NVDA will outperform or underperform the market.

The Sector Correlation Advantage

NVDA and SMH maintain an 85%+ correlation during normal market conditions. When this correlation breaks down, it often signals either NVDA-specific catalysts or broader sector rotation, creating high-probability trading opportunities.

Live SMH-NVDA Correlation Monitor

30-Day Correlation
Strong
87%
Normal Range (80-90%)
Sector Performance
+2.4%
SMH ETF: +2.8%
NVDA: +3.1%
Outperformance: +0.3%
Divergence Alert
Low Risk

No significant divergences detected. NVDA tracking sector normally.

Key SMH Holdings & Their NVDA Impact

NVIDIA

21.2%
Extreme Impact

Largest holding - NVDA movements drive SMH performance

Taiwan Semi (TSM)

12.8%
High Impact

NVDA's primary foundry partner - production capacity indicator

AMD

8.4%
Medium Impact

Direct AI chip competitor - competitive positioning gauge

Broadcom (AVGO)

7.9%
Medium Impact

Custom AI chip solutions - market expansion indicator

Qualcomm (QCOM)

6.1%
Low Impact

Mobile/edge AI - broader sector health indicator

Marvell (MRVL)

4.3%
Low Impact

Data center infrastructure - demand environment gauge

Daily SMH Monitoring Workflow

Follow this systematic approach to track semiconductor sector trends that impact NVDA. This 10-minute routine keeps you informed of sector-wide developments.

Your 10-Minute Sector Check

1
Check SMH vs NVDA Performance (3 minutes)
Current Session Comparison:
SMH ETF $240.50 +1.2%
NVDA $875.30 +1.8%
Relative Performance NVDA +0.6%
View SMH Chart SMH Analysis
2
Scan Semiconductor News (4 minutes)
Priority Sources:
Semiconductor Industry Association Industry reports and market data Visit SIA
EE Times Technical and industry developments Visit EE Times
Tom's Hardware Product launches and performance analysis Visit Tom's Hardware
3
Identify Divergence Opportunities (3 minutes)
Watch For These Signals:
NVDA Outperforming SMH Company-specific strength vs sector
NVDA Underperforming SMH Potential sector rotation or NVDA weakness
High Correlation (85%+) Normal sector dynamics - trend following
Trading Actions:
If NVDA outperforms: Consider increased NVDA position vs SMH
If SMH leads up: NVDA likely to follow - sector tailwind
If SMH leads down: Reduce NVDA exposure - sector headwind

Essential SMH Tracking Tools

TradingView

SMH/NVDA correlation charts and sector comparison

Free/Pro
Finviz

Semiconductor sector heatmap and screening

Free
Yahoo Finance

SMH ETF holdings and performance tracking

Free

Sector Rotation Detection System

Identify when money is flowing into or out of semiconductors, giving you advance warning of NVDA directional moves.

Current Sector Rotation Status

SMH vs QQQ (Tech)
+0.8%
Semiconductors outperforming tech
SMH vs SPY (Market)
+1.2%
Strong relative performance
SMH Volume
125% avg
Above average interest
Key Rotation Indicators:
Money Flow: Institutional buying in semiconductor names
Momentum: SMH 20-day MA above 50-day MA
Breadth: 70% of SMH holdings above 10-day MA

Advanced Correlation Analysis

SMH-NVDA Relationship Breakdown

Historical Correlation Periods:
Bull Market (2023) 92% correlation

High correlation during AI boom - both assets moved in lockstep

Earnings Seasons 75% correlation

Lower correlation as company-specific results drive individual performance

Market Stress 95% correlation

Very high correlation during sell-offs - risk-off sentiment affects all chips

Correlation Breakdown Signals:

Ready to Trade NVDA with Sector Intelligence?

Master the semiconductor sector dynamics that drive NVDA's explosive moves.

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