Nvidia-SK hynix Partnership Steadies VanEck Chip ETF After 10% Correction

A weekend deal between two technology heavyweights has thrown a lifeline to the semiconductor sector, pulling the VanEck Semiconductor UCITS ETF away from its recent lows. Nvidia and SK hynix sealed a multi-year pact to co-develop next-generation high-performance memory chips destined for Nvidia’s Vera Rubin supercomputers. While SK hynix is not a component of the ETF’s underlying US-listed index, the agreement shores up the supply chain for the fund’s single most important growth driver, giving analysts a reason to push back against creeping overvaluation worries. The ETF has steadied at €92.35, snapping a brutal sell-off that had sliced roughly 10% off its value in a matter of days.

That sell-off was triggered by a toxic one-two punch. Broadcom spooked investors with a lackluster medium-term outlook, while a surprisingly robust US jobs report — 172,000 new positions in the month — sent bond yields climbing and revived rate-hike fears. The combination hit the chip complex hard. Leveraged semiconductor products shed as much as 17% on Friday alone; the VanEck fund, cushioned by its diversified exposure, limited the damage to an 8% drop. But the correction wiped out the gains from the ETF’s all-time high near €103, reached on 3 June.

Despite the stumble, the longer-term picture remains arresting. The fund has delivered a year-to-date return of 68%, and from its June 2025 trough of around €38, the rally stands at an eye-watering 146%. Technical indicators reflect a healthy cooldown: the relative strength index sits at 55.6, in neutral territory, and the ETF continues to trade 16% above its 50-day moving average, with a commanding buffer above the 200-day line of roughly €60. Assets under management have swelled to around $9 billion, while the total expense ratio of 0.35% keeps costs low for a thematic vehicle. Volatility, however, remains a feature — annualised at 46% over 30 days, investors are warned to brace for sharp swings in either direction.

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

The fund tracks the MVIS US Listed Semiconductor 10% Capped ESG Index via physical replication, with dividends reinvested. Its concentration in a handful of mega-cap names explains much of its explosive momentum. Micron Technology leads the portfolio with a 14% weighting, followed by Advanced Micro Devices at 12%. ASML, TSMC, Intel, Broadcom and Nvidia each account for between 7% and 8%. This tilt toward the entire semiconductor value chain — from chip design and fabrication to production equipment — has been a tailwind as AI demand broadens beyond pure graphics processors. For much of the past year, Nvidia’s GPU boom dominated the narrative, but classical CPUs are now gaining ground as the AI build-out spreads into more diverse hardware.

The deal with SK hynix locks in critical memory supply for Nvidia’s next chip generation, providing a fundamental anchor for the ETF’s top exposure. Market participants are now shifting their focus back from transient rate anxieties to the structural demand for AI infrastructure. As long as the 50-day moving average near €79 holds, the technical setup for the VanEck Semiconductor fund remains firmly bullish.

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