40 Billion Reasons Why These Semiconductor Stocks Could Keep Beating the Market in 2023
The PHLX Semiconductor Sector index has lost 29% of its value in 2022 thanks to a slowdown in chip demand in two key sectors, smartphones and personal computers (PCs). But other areas such as data centers, artificial intelligence, the Internet of Things, and automotive have remained healthy, which probably explains why semiconductor stocks are on track to end the year on a high.
A closer look at the PHLX Semiconductor Sector index tells us that chipmakers are making a terrific recovery. More specifically, the index has gained nearly 30% in the past couple of months. This recovery has rubbed off positively on the index's constituents as well. Shares of ASML Holding (NASDAQ: ASML) and Taiwan Semiconductor Manufacturing (NYSE: TSM) -- popularly known as TSMC -- have shot up 62% and 25%, respectively, in the past two months.
The latest developments suggest that these semiconductor bellwethers could sustain their momentum on the stock market in 2023 and beyond. Let's see why that may be the case.
Source Fool.com
