##  [# Nvidia, Semiconductor Sales in Focus as SMH Holds Gains](/sections/news/nvidia-semiconductor-sales-focus-smh-holds-gains) 

 

# Nvidia, Semiconductor Sales in Focus as SMH Holds Gains

 

 

Global semiconductor sales jump 15% as Goldman raises Nvidia price target.



 

 

 

 

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[By Kent Thune ](/authors/kent-thune)

 May 07, 2024

 Edited by: Ron Day

 

 

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The Semiconductor Industry Association (SIA) [reported](https://www.semiconductors.org/first-quarter-global-semiconductor-sales-increase-15-2-year-to-year-march-sales-tick-down-0-6-month-to-month/) Tuesday that global semiconductor sales jumped 15% on a year-over-year basis, as Regionally, as sales increased in China (27.4%), the Americas (26.3%), and Asia Pacific (11.1%), and only slight declines in other regions.

The report also said March sales declined 0.6% month over month.

The largest exchange-traded fund focused on semiconductor stocks, the [**VanEck Semiconductor ETF (SMH)**](https://www.etf.com/SMH), was mostly flat midday. While investors appear cautious ahead of Nvidia’s earnings due later this month, the report’s issuer offered a bright outlook for the rest of the year.

“The market is expected to continue to grow during the remainder of the year, with double-digit annual growth [projected](https://www.wsts.org/76/Recent-News-Release) for 2024,” said John Neuffer, SIA president and CEO.

## Can Semiconductor ETFs Continue to Rise in 2024?

For investors expecting eye-popping sales increases and big earnings beats from Nvidia on a quarterly basis, anything less than extraordinary news may not be enough to push semiconductor stock prices higher, as they may already be priced to perfection.

The average price-earnings ratio for holdings in the SMH ETF is 29, according to [Morningstar](https://www.morningstar.com/etfs/xnas/smh/portfolio), while the P/E on the S&amp;P 500 index is just under 25, as reported by [Y Charts](https://ycharts.com/indicators/sp_500_pe_ratio). For reference, the average historical P/E for the S&amp;P 500 ranges from 15-20.

SMH is up about 10% since its most recent low on April 19 and is now trading around 5% below its all-time high price.

 
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## Nvidia Earnings, Price Target in Focus

With Nvidia’s first-quarter earnings results slated for May 22, Goldman Sachs analysts maintained their buy rating on Nvidia stock Tuesday and raised their 12-month target price from $1,000 to $1,100. This price target represents an increase of 20% from Wednesday’s price of $916 and would mark an all-time high for the $2.2 trillion semiconductor company.



 

 

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 [ Kent Thune CFP, Senior Content Editor ](/authors/kent-thune) 

 

 

  Kent Thune is Senior Content Editor for etf.com, focusing on educational content, thought leadership, content management and search engine…   [View Bio](/authors/kent-thune)

 



 

 


 Related Topics  [Semiconductors](http://www.etf.com/topics/semiconductors) 

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