Still, some market observers believe the semiconductor space is richly valued.

“The outperformance has made individual names in the space expensive, though. Take Nvidia for example – its shares have surged 20 percent since the beginning of the year, quadruple gains by the S&P, putting its price-earnings ratio at 50 times forward earnings,” according to CNBC.

“Worldwide semiconductor revenue is forecast to total $401.4 billion in 2017, an increase of 16.8 percent from 2016,” according to Gartner, Inc. “This will be the first time semiconductor revenue has surpassed $400 billion. The market reached the $300 billion milestone seven years ago, in 2010, and surpassed $200 billion in 2000.”

For more information on the tech segment, visit our technology category.

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