Preheat smoker to 250°F and add wood chips.
Fully cook chorizo in a skillet, drain grease if desired.
Cube Velveeta and cream cheese.
Combine Velveeta, cream cheese, rotel, and chorizo in a disposable aluminum pan.
Smoke for 1 hour or until completely melted, mix every 20 minutes.
Enjoy with tortilla chips and good company!