Why Chip Companies Are Important to the Future of Tech

Over the past 12 months, the Philadelphia Semiconductor Index rallied about 90% as global demand for chips surged through the pandemic. Stay-at-home trends boosted sales of new PCs, data centers installed more chips to keep pace with the surging usage of cloud and AI services, and new technologies -- including driverless cars, automated factories, and 5G networks and devices -- gobbled up more chips.

That demand propelled the price of many leading chip stocks, including Qualcomm, Advanced Micro Devices (NASDAQ: AMD), and NVIDIA (NASDAQ: NVDA), to historic highs. Taiwan's Taiwan Semiconductor Manufacturing (NYSE: TSM), the world's largest contract chipmaker, also benefited from those surging orders.

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Source Fool.com