Tech ETFs face another problem: Weakness in semiconductor stocks. Eddy Elfenbein of the Crossing Wall Street blog said chip stocks are facing pressure from faltering PC sales, a strong U.S. dollar and weak economies in Asia. Despite better-than-expected earnings reports from chipmakers such as NXP and Qorvo, Elfenbein said the outlook remains grim until those central conditions improve,” according to CNBC.
The semiconductor industry, though, faces some headwinds. Research firm Gartner anticipates that worldwide shipments of personal computers, tablets and smartphones rose only modestly last year, which could cause chip sales to decline.
Tom Lydon’s clients own shares of QQQ.