The semiconductor industry has both prospered and reeled amid a global chip shortage. While its products command a premium price, the lack of chips left the industry unprepared to meet demand in many areas. Later, lower consumer spending eased the shortage in some parts of the industry, leading to significant stock declines.

However, chip production lags remain in key sectors of the economy, such as automotive. Moreover, any slowdown in spending will likely give way to secular growth trends, particularly for a semiconductor stock like Qualcomm (NASDAQ: QCOM).

Qualcomm has long led the smartphone chipset industry. Historically, Qualcomm chips powered all of the latest cellular and, later, smartphones sold across the world. This has continued in the 5G era as the company led the way in producing chips for that latest technology.

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Source Fool.com