The global market meltdown left no sector untouched, and semiconductor exchange traded funds (ETFs) took their fair share of the drubbing. Now there are calls for a comeback. Here’s how you can play along.
Semiconductors are market survivors. To wit:
- After the sector showed resilience in the months following the market’s meltdown and companies have returned to positive earnings, analysts now feel that it has good long-term prospects, Rothman Research on CNN Money reports.
- The contract prices of 12-inch wafers are heading up. On average, prices for 12-inch wafers could go up as much as 10%-20% in the second quarter after going up 10% in the fourth quarter and 5% in the first of this year, Ingrid Lee for DigiTimes reports. [Semiconductor Sector Looking Up.]
- Meanwhile, Michael McManhus for DigiTimes reports that global e-book shipments are on the rise and could increase to as much as 28 million units by 2013. The industry is set to see a major shakeup in 2010, as established content providers such as Barnes & Noble become more competitive and niche players in Europe grab a piece of the rapidly expanding market. Nonetheless, this should also up the demand for chips and wafers in the year to come. [4 Reasons Semiconductor ETFs Are On Track.]
For more stories about semiconductors, visit our semiconductors category.
- SPDR S&P Semiconductor (NYSEArca: XSD)
- iShares S&P North America Technology-Semiconductors (NYSEArca: IGW)
- PowerShares Dynamic Semiconductors (NYSEArca: PSI)
- Ultra Semiconductor ProShares (NYSEArca: USD)
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.