5G Is Rescuing These Top Semiconductor Stocks From the Trade War
One of the most exciting sectors in the market today -- for good and bad -- is semiconductors. Semiconductors play an increasingly important role in the world, as new technologies like artificial intelligence, machine learning, the Internet of Things, self-driving vehicles, and especially 5G take hold in the market. Yet at the same time, the ongoing U.S.-China trade war has sapped business confidence, leading to extreme caution on the part of chip buyers worldwide. A downturn in demand can wreak havoc on semiconductor stocks, which have oversupplied the market over the past year, leading to many negative-earnings surprises.
This has set up an interesting dynamic where big secular trends are running headlong into a cyclical downturn. Yet starting in the second half of 2019, it appears that one secular trend -- the buildout of 5G networks -- is beginning to overwhelm these macroeconomic fears, sending certain semiconductor-related stocks soaring.
5G is benefiting semi-cap equipment stocks, despite the trade war. Image source: Getty Images.
Source Fool.com
