Semiconductor ETFs Hit the Refresh Button | ETF Trends

Semiconductor revenue is on the upswing, and semiconductor exchange traded funds (ETFs) could use the boost. But analysts are really wondering if this trend will sustain for the rest of 2010 into the next year.

The Semiconductor Industry Association’s data shows that semiconductor revenue in August hit a record of $25.7 billion. That’s a 32.6% jump from a year ago. Carlos Guillen for Seeking Alpha reports that weak PC demand won’t derail the industry’s full-year growth. That’s because demand for semiconductors has gone beyond computers. [Tech ETFs Power Up.]

It’s a nice turnaround for an industry that was dragged down along with the broader markets this summer, says Larry D. Spears for Money and Markets. Future expectations are being lowered slightly, because while chip sales continue, they’re slowing down.

Lee Gomes for Forbes reports that a new material may take the semiconductor industry by storm: graphene. Silicon chips are running up against limits as the demand for ever-faster semiconductors grows. Graphene, however, is just a single atom thick and conducts electricity extremely well. [Semiconductors Face Choppy Seas.]

For more stories about the semiconductor sector, visit our technology category.

  • iShares S&P North America Technology-Semiconductors (NYSEArca: IGW)
  • SPDR S&P Semiconductor (NYSEArca: XSD)
  • PowerShares Dynamic Semiconductors (NYSEArca: PSI)

To go extra long or short on semiconductors, also consider:

  • ProShares Ultra Semiconductors (NYSEArca: USD)
  • ProShares UltraShort Semiconductors (NYSEArca: SSG)

Tisha Guerrero contributed to this article.

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.