Here's Why Semiconductor Sales Are Booming While the Rest of Tech Slows Down
Inflation, war, and surging interest rates have pummeled the market of late, especially tech stocks. Netflix (NASDAQ: NFLX) earnings may have shown the consumer pulling back on certain tech purchases -- at least those that are highly discretionary. With investors in a sour mood, every bad earnings report from any prominent company is leading to talk of a recession.
But don't tell that to the semiconductor industry. Despite the dim view of many investors, semiconductor sales are booming right now. Not only that, but based on recent industry commentary, the strength should continue for the next couple of years, despite what the overall economy might do.
Over the past week, several bellwether semiconductor production companies have reported earnings, including Taiwan Semiconductor Manufacturing (NYSE: TSM) and ASML Holdings (NASDAQ: ASML). Taiwan Semiconductor Manufacturing is the world's leading third-party foundry, with more than 50% market share. Meanwhile, key toolmaker ASML is the leader in lithography equipment, which beams extremely thin lasers that print transistor patterns on wafers. ASML also has a monopoly on key extreme ultraviolet (EUV) technology needed for leading-edge chips.
Source Fool.com
