Wall Street bets on AI chip boom keep getting more concentrated

The AI boom and success of Nvidia, now the U.S. market's largest stock, have made the semiconductor sector one of the most closely watched corners of the market. Nvidia's rise to a market cap over $4 trillion has led to concerns about the S&P 500's concentration in a handful of tech stocks. But in another respect, a focus on chip stocks as an investment theme can be worth a look for investors with an aggressive bent.

Wall Street is finding new ways to create more concentrated bets on the chip sector.

The VanEck Semiconductor ETF (SMH) has been the standard for investors looking to capture the sector's growth. Its portfolio spans the global supply chain: Nvidia designs GPUs, TSMC manufactures them, and ASML supplies the necessary equipment. It has