Strong demand for consumer electronic devices have been a contributor to the growth of the semiconductor industry. Electronic gadgets such as the full feature cell phones and MP3 players require chips and with Microsoft’s new operating system coming next year, PCs will again demand more from the chipmakers.
If you want to spread your bets on chipmakers, such as Motorola and Intel, there are exchange traded funds that are devoted to semiconductor companies. iShares Goldman Sachs Semiconductor (IGW) is up 17% for the year. Other semiconductor ETFs include PowerShares Dynamic Semiconductors (PSI) and Semiconductor HOLDRs (SMH).
Please note that our clients own shares of IGW.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.