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Weakening#93 of 115 by 1M spread

Semiconductors vs the S&P 500 (SMH): is it outperforming?

Over the past month, SMH has underperformed the S&P 500 by 6.8 points. Here is where that puts it in the sector rotation — updated daily.

1M spread vs SPY
−6.8 pts
Quadrant
Weakening
Momentum
Weakening
RS health
Broken
Holdings P/E
71.0×

Where SMH sits on the rotation map

Semiconductors highlighted against the 11 broad S&P 500 sectors. Vertical: 1-month spread vs the S&P 500. Horizontal: the longer, time-shifted window — the methodology explains the math.

SMH vs SPY: head-to-head returns

SMH (semiconductors) and SPY (the S&P 500) side by side over every window Zensei tracks. The spread is the difference — positive means SMH won that window.

Window
SMH
SPY
Spread
1 week−3.1%−0.3%−2.8 pts
2 weeks−4.2%+2.8%−7.0 pts
1 month−5.5%+1.2%−6.8 pts
3 months+32.1%+9.5%+22.6 pts
6 months+49.6%+8.5%+41.0 pts
1 year+104.3%+21.4%+82.9 pts

Data as of 2026-07-13 · computed from daily adjusted closes · how we measure

The read

Semiconductors (SMH) is losing its lead. It built a 31.7-point advantage over the S&P 500 across the longer, time-shifted window, but over the past month it has slipped 6.8 points behind the market — the weakening quadrant of the rotation map. Ranked by one-month spread, it currently stands #93 of the 115 groups Zensei tracks.

On the shorter tape, SMH's momentum is weakening: the intraday trend that carried the move is cooling across the shorter windows. SMH's relative-strength line has broken below its long-term average — the long-term outperformance trend is no longer intact. Both signals point the same direction here: the market is not rewarding this group on either horizon.

The exposure comes via VanEck Semiconductor ETF, whose 25 tracked holdings are led by NVIDIA CORP, TAIWAN SEMICONDUCTOR MANUFACTURING CO LTD ADR and BROADCOM INC. Weighted by portfolio, the fund's holdings trade at roughly 71.0× earnings and 17.2× sales. The thing to watch from here is whether this is a pause or a handoff: weakening groups sometimes reset and reclaim leadership, but a deepening one-month deficit usually means rotation has moved on.

What's inside SMH

Top 5 of 25 tracked holdings, by portfolio weight.

Holding
Weight
1M
NVDANVIDIA CORP
19.9%−0.8%
TSMTAIWAN SEMICONDUCTOR MANUFACTURING CO LTD ADR
9.4%−0.5%
AVGOBROADCOM INC
6.0%+0.7%
AMDADVANCED MICRO DEVICES INC
5.6%+4.5%
MUMICRON TECHNOLOGY INC
5.2%−4.5%
20 more holdings — each measured against the sector, with momentum and relative strengthUnlock with Premium

Semiconductors vs the market — common questions

Is semiconductors outperforming the S&P 500?

Right now, no: over the past month SMH has underperformed the S&P 500 by 6.8 points. This page updates daily, so the answer reflects current market data rather than a dated article.

What is SMH?

SMH is VanEck Semiconductor ETF, the fund Zensei uses to measure the semiconductors group against the S&P 500 benchmark (SPY).

Which stocks are in SMH?

SMH's largest tracked positions are NVIDIA CORP, TAIWAN SEMICONDUCTOR MANUFACTURING CO LTD ADR, BROADCOM INC, ADVANCED MICRO DEVICES INC, MICRON TECHNOLOGY INC — 25 holdings in total. The full list, with each stock measured against the group, is part of Zensei Premium.

What quadrant is semiconductors in right now?

As of the latest daily data, semiconductors is in the weakening quadrant — still ahead over the longer window, but behind the market over the past month. The quadrant rules are documented on the Zensei methodology page.

Related sectors

Track semiconductors against the whole market

Zensei Edge maps 100+ sectors and themes against the S&P 500 — with the stocks inside each one, rotation history and alerts when leadership changes hands.