Why Semtech Stock Was Winning Big This Week
A general recovery in semiconductor stocks and a positive analyst note was the one-two combination Semtech (NASDAQ: SMTC) stock needed to have a good week on the market. The company's share price was almost 19% higher week to date as of early Friday morning, according to data compiled by S&P Global Market Intelligence.
The mid-summer period was hard on many semiconductor stocks and, by extension, numerous titles in the tech sector generally. Fear started to spread of corporate over-enthusiasm for artificial intelligence (AI), which could lead to a great deal of spending, quickly, on the technology. This negative feeling affected semiconductor stocks too, likely because they would face challenges if demand for AI chips suddenly tanked on resulting pullbacks in spending.
This week, that fearful sentiment seemed to change, with some of the top names associated with AI enjoying rallies. Not least of these were chip companies, with bellwether sector names like onetime highflier Nvidia taking to the skies again.
Source Fool.com
