With 2014 nearly complete, the question is can PSI come close to duplicating this year’s performance next year? The answer is yes, particularly if the ETF’s holdings can deliver upside earnings and revenue surprises. Expectations are in place for another strong year for the semiconductor group, but it will be up to the individual companies, including PSI holdings, to show those expectations are not fully reflected in current share prices.
“The worldwide semiconductor capital equipment market is forecast to increase 20.8 percent this year to $38.44 billion, compared with 2013’s $31.82 billion, and another 10.8 percent in 2015 to $42.6 billion,” Jeff Dorsch reports for Solid State Technology, citing Semiconductor Equipment and Materials International. Next year is expected to be the biggest year for semiconductor spending since 2000, according to Semiconductor Equipment and Materials International.
PowerShares Dynamic Semiconductors Portfolio
Tom Lydon’s clients own shares of Apple.