AI stocks like Nvidia and OpenAI are driving the latest stock market boom. However, picking a winner in the sector isn’t easy, with Nvidia facing challenges from competitors like AMD and TSMC. Investing in the VanEck Semiconductor ETF (SMH) offers exposure to top chip stocks, with a history of outperformance.

The SMH ETF has outperformed the S&P 500, with top holdings like Nvidia and Taiwan Semiconductor delivering strong returns. Even companies like ASML and Intel, which lagged behind, have seen growth. Demand for semiconductors will continue to rise, making the SMH a long-term winner in the AI era.

Despite a trailing P/E ratio of 46, the SMH ETF includes companies with high growth potential. Nvidia reported 62% revenue growth, and Micron’s earnings per share is expected to quadruple. The ETF also provides exposure to international stocks like TSMC and ASML, not in the S&P 500.

Consider the Motley Fool’s top stock picks before investing in the VanEck Semiconductor ETF. Past recommendations like Netflix and Nvidia have generated significant returns. Stock Advisor’s total average return is 932%, outperforming the S&P 500. Don’t miss out on the latest top 10 list and join an investing community for individual investors.

Read more at Nasdaq: Don’t Know Which AI Stock To Buy? Here’s the Easiest Way To Play the Once-in-a-Generation Tech Boom.