Many semiconductor stocks slumped this year as investors fretted over concerns about slowing sales of PCs and smartphones, the potential overproduction of chips in response to the global chip shortage, and more conservative enterprise spending in a tougher macro environment. Rising interest rates exacerbated that pressure by driving investors away from higher-growth tech stocks.

As a result, the Philadelphia Semiconductor Sector index has declined about 24% this year as the S&P 500 retreated just 12%. However, investors who can tune out the near-term noise should still pick up some semiconductor stocks as the bulls shun the sector -- since the global demand for new chips will likely pick up again and accelerate over the long term.

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Source Fool.com