3 Top Chip Stocks to Buy Right Now
While the entire market has sold off this year, the chip sector has taken a big downturn, especially in the past few weeks. More aggressive rate increases from the Federal Reserve have prompted concerns of a recession, which is never a great thing for semiconductor sales.
Yet while consumer electronics bought during the pandemic, such as PCs and phones, are seeing a downturn, it appears auto and industrial chip demand remains robust. According to Trendforce, the auto sector is the only chip end-market still currently seeing "strong demand" for power management chips. According to Market Future Research, the auto chip sector is set to see 12.3% annualized rate through 2028, as more electrified and autonomous vehicles require more and more chips with each passing year. Meanwhile, labor shortages and the desire to bring manufacturing capacity back onto U.S. and European shores has boosted demand for industrial automation chips.
With the whole chip sector down for the count on recession fears, these auto and industrial-focused chipmakers looks like tantalizing buys.
Source Fool.com