The pandemic has accelerated the tech revolution, mainly due to the need for people to stay connected while sheltering in place. Millions more are working from home than ever before. Schools and colleges have had to transition to online classes. Many see these changes as much more than temporary as our technological landscape is quickly evolving to fit our changing needs.
Our reliance on computers, phones gadgets and games has increased, along with demand for semiconductor chip maker’s essential technology.
Chip makers rallied more than 1% yesterday, recovering earlier losses, yet the group is still underperforming compared with the sector for the year. S&P Technology is up almost 10% YTD, while the VanEck Vectors is only up 4.5% YTD. Chip makers play a critical role in technology but the group has been slow to catch up, relative to the sector. We see this as an indicator for steady upside movement. Are there any breakout names in the semi space?
Intel Corp. (NASDAQ:INTC) remains competitive in the space through it’s innovation,ability to create new products and evolve with the times. INTC share price is still below February highs and offers plenty of upside from here.
Another way to play the Semi group is with ASML Holdings (NASDAQ: ASML), a major supplier to the semiconductor industry. ASML was one of the first stocks to break above it’s February peak after the COVID-19 caused collapse, which we see as a sign of relative strength and continued gains.
