All But 1 Of 6 Semiconductor Segments Outperformed The Nasdaq This Week

 

The semiconductor value chain refers to the various stages involved in the production and distribution of semiconductor devices such as microprocessors, memory chips, and sensors which are used in a wide range of electronic devices, including smartphones, computers, and automobiles.

Its 6 segments are presented below, in descending order, along with a list of the constituents in each Portfolio. Those with returns this week of +5% or more and -5% or more are boldfaced, and accompanied by any pertinent news, analyses and commentary.

1. Pure-Play Assembly, Test and Packaging Companies Portfolio: up 4.8% this week; up 5.0%; up 26.6% 
   • Segment Focus: assembles chips into finished semiconductor components and tests for defects
   • Constituents: ASX; AMKR (+5.1%)
   • Pertinent news, analyses and commentary:
     • Amkor Technology (AMKR) Advances
2. Largest Integrated Semiconductor Manufacturers (IDM) Portfolio: up 2.2% this week; up 4.0 MTD; up 15.7% YTD
   • Segment Focus:  designs, manufactures, and sells its own semiconductor products to allow them to control the entire production process, from design to fabrication, resulting in greater efficiency and quality control.
   • Constituents: INTC (+7.7%); STM; IFNNY; MU; MCHP; ADI; TXN; NXPI
   • Pertinent news, analyses and commentary:
     • Why Intel Stock Popped
3. Pure-Play Semiconductor Foundries Portfolio: up 2.1% this week; up 7.1% MTD; up 43.4% YTD
   • Segment Focus: concentrates all its efforts in the manufacturing of chips based on designs provided by other semiconductor companies which allows it to specialize in manufacturing processes and technologies
   • Constituents: TSM; GFS; UMV; TSEM
4. Pure-Play Fabless Semiconductor Companies Portfolio: up 0.7% this week; up 5.4% MTD; up 46.3% YTD
   • Segment Focus: designs and sells hardware devices and semiconductor chips while outsourcing their fabrication (or fab) to a specialized manufacturer
   • Constituents: AVGO; AMD (+5.6%); NVDA; QCOM; MRVL; MPWR
   • Pertinent news, analyses and commentary:
     • AMD Stock A Buy Ahead Of Chipmaker's Q2 Earnings Report
     • AMD signs $665m deal to acquire Silo AI
5. Pure-Play Semiconductor Equipment and Material Suppliers Portfolio: up 0.7% this week; up 3.7% MTD; up 41.5% YTD
   • Segment Focus: provides essential equipment for manufacturing semiconductors such as lithography machines, etching, test and packaging equipment, automation and inspection systems and production materials such as chemicals, gases, wafers and packaging
   • Constituents: ENTG (4.6%); ASML; KLAC; LRCX; AMAT
   • Pertinent news, analyses and commentary:
     •  A Look at Entegris and Its Peers
6. Pure-Play EDA Custom Design Software Stocks Portfolio: DOWN 1.3% this week; up 3.0% MTD; up 26.1% YTD
   • • Segment Focus: uses electronic design automation (EDA) software to assist engineers in the custom design and development of complex chips
     • Constituents: CDNS; SNPS

Summary

On average, the above 6 segments went up 0.5% this week compared to a 0.3% increase in the Nasdaq and are now up 38.6% YTD vs. the Nasdaq which is "only" up 23.9% YTD.  Understanding the semiconductor value chain and the companies involved in it is crucial for anyone interested in technology and its impact on the global economy.

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