Qualcomm Outpaces Nvidia as SMH ETF Jumps 18.2% on CPU Demand Shift
QCOM•Qualcomm shares outpaced Nvidia in May as the VanEck Semiconductor ETF surged 18.2% on accelerating AI spending and a shift toward CPU‐based inference. Intel and Qualcomm benefited from a change in GPU‐to‐CPU ratio from 8:1 in training to 3–4:1 for inference, with agentic AI likely to amplify CPU demand.
1. SMH ETF Surges 18.2%
The VanEck Semiconductor ETF climbed 18.2% in May, propelled by increased AI spending and a sector rotation toward CPU-centric workloads. Investors shifted focus as inference and early agentic applications require more CPU power, boosting demand for companies like Intel and Qualcomm.
2. GPU-to-CPU Ratio Shifts Fuel CPU Leaders
Qualcomm and Intel outpaced GPU vendors as AI inference workloads changed GPU-to-CPU ratios from roughly 8:1 in training to 3–4:1 in inference. Qualcomm's Snapdragon data center chips and 5G modems are poised to capture this growing CPU demand, potentially accelerating revenue growth.
