Rising demand for smartphones and new computers equipped with the fastest and most functional operating systems is powering the semiconductor sector and exchange traded funds (ETFs) through an overall uptrend.

According to industry experts and analysts, the semiconductor sector is bouncing back as demand for the latest smartphones and portable computers grows. Archibald Preushcat and Maarten van Tartwijk for The Wall Street Journal report that the European tech stocks rose this week as semiconductor firms suggested a recovery is in the offing.

The uptrend is the result of a combination of factors, including re-stocking, seasonality and growing demand from Asia and the United States. The previous quarters of low inventory have somewhat helped fuel the rally, but is not the sole cause.

Meanwhile, BBC News reports that chip-making heavyweight Samsung is staying cautious despite signs of improvement. The largest chip-maker said the semiconductor sector was performing better than expected because of government help.

• iShares S&P GSTI Semiconductor (NYSEArca: IGW): up 60.6% year-to-date



• SPDR S&P Semiconductor (NYSEArca: XSD): up 74.5% year-to-date



• Semiconductor HOLDRs (NYSEArca: SMH): up 47.3% year-to-date

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Tags: IGW, Sector ETFs, Semiconductors, SMH, Technology, XSD