Google-Intel Pact Sparks VanEck Chip ETF’s Recovery After Trillion-Dollar Sector Wipeout

The semiconductor market is staging a ferocious comeback. Just days after a single Broadcom warning erased more than a trillion dollars in sector value – the steepest one-day loss since March 2020 – the VanEck Semiconductor UCITS ETF has bounced back sharply. On Tuesday, the fund added 2.18% in Frankfurt, hitting €97.55. That followed an even larger surge on 8 June, when Intel’s 13% leap – triggered by Alphabet’s plan to buy over three million custom TPU chips for 2028 – helped the ETF recover much of its recent losses.

Intel wasn’t the only winner. Micron Technology jumped 9.87% on the same day, and Marvell Technology advanced 9.63%, as investors snapped up bets on AI infrastructure. The rally was broad enough to push the KOSPI-200 futures in South Korea up 5%, briefly tripping a circuit breaker. Samsung Electronics and SK Hynix both rose roughly 6% in Seoul, reflecting the global nature of the rebound.

Demand Versus Macro Headwinds

The speed of the recovery has caught many by surprise. Only two days before the Google-Intel deal broke, Broadcom’s cautious outlook had sent the entire sector into a tailspin. Then on 5 June, a stronger-than-expected US jobs report – 172,000 new positions – doused hopes for early rate cuts, pressuring tech stocks again. Yet the chip sector snapped back faster than the broader market, a sign that institutional investors see the dip as a buying opportunity for AI-related plays.

Should investors sell immediately? Or is it worth buying VanEck Semiconductor UCITS ETF?

That disconnect is visible in valuations. The iShares Semiconductor ETF, a close peer, now trades at a price-to-earnings multiple of 39.93, nearly double the S&P 500’s 22. The VanEck fund’s annualized volatility of roughly 46% underscores just how sensitive these stocks are to corporate guidance and macro data.

New Supply Lines Emerge

The hunger for AI hardware is also reshaping global supply chains. Corning added 9% on 8 June after Amazon placed a multibillion-dollar order for fiber-optic cable destined for US data centres. Meanwhile, India is accelerating its semiconductor ambitions: twelve new factories have already been approved under the second phase of its chip mission, with Micron and Kaynes producing commercially. Even 2-nanometer fabrication is on the cards for India. For ETF investors, that means the fund’s composition – currently concentrated in US names – may shift as production disperses.

Long-Term Streak, Short-Term Swings

Despite the recent turbulence, the VanEck ETF’s longer-term numbers remain striking. It has surged 77.49% since the start of 2026 and 155.23% over the past twelve months. The fund’s 52-week low of €37.62 in June 2025 sits more than 150% below the current price. Still, it has yet to reclaim its all-time high of €102.98, set on 3 June. The relative strength index stands at 62.6, neutral territory that leaves some room for further gains but little margin for error.

The pattern looks clear: AI demand is decoupling from the economic cycle, but the volatility that comes with high-growth, high-multiple stocks is here to stay.

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