Is The Worst Over For Semiconductor Stocks & ETFs?

Image: Bigstock

Semiconductor stocks had taken a beating this year, due to fears about global economic slowdown and soaring input costs. Many of them have rebounded in the past few weeks, particularly after cooler-than-expected inflation reports and better-than-feared results.

Shares of world’s largest contract chipmaker Taiwan Semiconductor (TSM - Free Report) surged after it was revealed that Warren Buffett’s Berkshire Hathaway invested more than $5 billion in the company. TSMC accounts for around 55% of the global foundry or fab market.

ASML Holding NV (ASML - Free Report) produces extreme ultraviolet lithography machines that use light to print patterns on silicon wafer at a minuscule scale. These sophisticated machines are used by the world’s leading chip manufacturers, including Taiwan Semiconductor, Intel (INTC - Free Report), and Samsung. ASML stock surged after the company raised its financial targets recently.

NVIDIA (NVDA - Free Report), America’s largest chip company, beat revenue expectations but its earnings fell short. However, their data center business remained strong. Its competitor AMD (AMD - Free Report) had reported results at the beginning of the month and beaten consensus estimates despite weaker PC environment as it expanded into servers.

The VanEck Vectors Semiconductor ETF (SMH - Free Report) follows a market cap-weighted index of 25 US-listed semiconductor companies. TSMC, NVIDIA, and ASML are its top holdings.

The iShares PHLX Semiconductor ETF (SOXX - Free Report) is a modified market cap weighted ETF. It has 30 holdings with a cap of 8% on individual securities. Broadcom (AVGO - Free Report) and Texas Instruments (TXN - Free Report) are its top holdings.

The SPDR S&P Semiconductor ETF (XSD - Free Report) is an equal-weighted ETF. The Invesco PHLX Semiconductor ETF (SOXQ - Free Report), which made its debut last year, is now the cheapest product in the space.

Video Length: 00:11:46


More By This Author:

Is The Worst Over For Housing Stocks & ETFs?
Why China Stocks & ETFs Are Soaring
Why Managed Futures ETFs Surged In 2022

Disclaimer: Neither Zacks Investment Research, Inc. nor its Information Providers can guarantee the accuracy, completeness, timeliness, or correct sequencing of any of the Information on the Web ...

more
How did you like this article? Let us know so we can better customize your reading experience.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.