Why Taiwan Semiconductor Manufacturing's Earnings Made Me Even More Bullish on Semiconductors
The market has pulled back amid concerns over rising inflation and the Federal Reserve's aggressive interest-rate increases. One recent casualty has been semiconductor stocks, which many investors consider to be cyclical plays on the economy.
A few analysts have recently downgraded chip names after channel checks reported signs of potential slowing in PC and smartphone sales globally. "We don't have a smoking gun pointing to a correction underway in any of these markets, but it's very clear to us that all 3 segments (gaming, PC and 'broad-based/XLNX') are running at elevated levels," said Barclays analyst Blayne Curtis in a recent downgrade of Advanced Micro Devices.
Amid the pessimism as we exit COVID, the iShares Semiconductor ETF (NASDAQ: SOXX) is down more than 22% on the year.
Source Fool.com