When looking at the PHLX Semiconductor Index specifically, 2018 hasn’t been kind to the sector as it’s been down 0.77% year-to-date, largely dragged down by trade wars between the United States and China.

However, if both nations can replicate the cooperation that the U.S. and European Union were able to accomplish last week, the semiconductor industry could get an infusion of positive market activity in the coming months, which could benefit semiconductor investors–even more so for leveraged plays like the Direxion Daily Semicondct Bull 3X ETF (NYSEArca: SOXL).

In its year to date chart, the PHLX Semiconductor Index has been a paragon of volatility, crisscrossing its 50-day moving average. Since the beginning of July, it’s dwelled below the 50-day moving average, but that could change if the positive news from earnings reports provides a fundamental peek inside the sector that runs contrast to the trade wars.

Betting on a Semiconductor Comeback Times Three 1Just recently, ON Semiconductor Corporation released its second-quarter earnings results, posting an earnings per share number of $0.46, which bested consensus estimates of $0.45 EPS. Furthermore, their revenue of $1.46 billion ousted last year’s second-quarter revenue of $1.38 billion.

“Demand for our products continues to accelerate as customers are increasingly relying on us to provide key technologies for newly emerging applications in automotive and industrial markets,” said Keith Jackson, CEO of ON Semiconductor.

Related: Why Semiconductor ETFs Can Bounce Back

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