“It’s thanks to the recent advances in artificial intelligence, autonomous driving and data centers that semiconductor stocks have enjoyed such a rally, Gilbert said,” according to CNBC.
Investors are displaying enthusiasm for semiconductor ETFs this year. On a year-to-date basis, SOXX has seen inflows of $140.3 while SMH has hauled in more than $356 million in new assets.
“While we continue to expect quarter-to-quarter variance in capital spending owing to a more concentrated semiconductor manufacturing customer base, when observing spending patterns over years, data suggests since coming out of the 2008/2009 downturn, capital spending has been more stable than any other time over the past 30 years,” according to a JPMorgan report on semiconductor stocks published last month.
Semiconductor ETFs have recently been durable performers as semiconductor stocks are rebounding to steady the broader technology sector, but that does not mean the gains are over for this suddenly hot group. However, valuations are rising for chip stocks.
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