Is the Chip Shortage Over? Not So Fast
Semiconductor stocks have done very well since November amid booming demand and pandemic-induced supply constraints. Yet after solid year-to-date performance, investors appear wary of any hint of a slowdown and an end to the current boom phase of this cycle.
After several sector bellwethers recently reported earnings, semiconductor stocks took a bit of a dip. Management from Taiwan Semiconductor Manufacturing (NYSE: TSM), Intel (NASDAQ: INTC), and Texas Instruments (NASDAQ: TXN) all pointed to some easing of the current shortage in the most heavily affected auto chip sector. However, autos are only a small portion of industry, so it's misguided for investors to focus solely on that. Other comments pointed to continued demand strength that could last well into this decade, especially for leading-edge chips.
That's why the recent pullback may be short-lived, so investors may want to use the current weakness to pick up some shares of their favorite chip stocks.
Source Fool.com
