THE SEMICONDUCTOR INDUSTRY GRABBED headlines in 2021 mostly due to a supply shortage that crippled industries, such as autos, for which chips are a key component. The world awoke to the fact that seemingly everything these days—from garage-door openers to rockets—runs on what’s now dubbed “the new oil.”
The acute supply-demand imbalance, induced largely by pandemic disruptions, should ease as we move through 2022. But the insatiable appetite for semiconductors will continue to surge. Angelo Zino, an analyst for investment research firm CFRA, foresees a “super cycle” for the industry over the next decade as the content per device and sophistication of semiconductors grow. For example, artificial intelligence capabilities, which essentially replace the human brain and require high-performance chips, are expanding in industries ranging from autos to medicine to data centers.
Devices are getting smarter. Applied Materials, the largest equipment supplier to the semiconductor industry, projects that between 2020 and 2025, the value of semiconductor content will jump 50% per automobile, to $690, and it will double for an average data center server, to $5,600. The growing adoption of 5G telecommunications will help boost the value of chip content of a high-end smartphone to $275. Overall, the industry should expand by 2.5 to 3 times the rate of gross domestic product growth and become a $1 trillion market in 2030.
With this inexorable growth in mind, we identified six attractive stocks that range from chip designers to manufacturers to equipment suppliers. Valuations in the industry aren’t cheap, but they have come down in recent weeks along with those of the tech sector overall, hit by the recent run-up in interest rates. Returns and other data are through January 7.
Bu hikaye Kiplinger's Personal Finance dergisinin March 2022 sayısından alınmıştır.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Giriş Yap
Bu hikaye Kiplinger's Personal Finance dergisinin March 2022 sayısından alınmıştır.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Giriş Yap
MAKING A DIFFERENCE IN THE LIVES OF DISABLED VETERANS
He suffered grave injuries in the line of duty. Now he helps other veterans who have disabilities.
DO YOU NEED UMBRELLA INSURANCE?
A policy can protect you from financially devastating events.
Navigating Finances as a Blended Family
Money matters can get complicated when two families unite. Planning is key.
BREAKING UP WITH YOUR BROKER
Be aware of these challenges when you move your money to a new home.
CHOOSE A MEDICARE PLAN THAT'S RIGHT FOR YOU
Consider your health care needs over the long term as you weigh costs and coverage.
Keep Faith in These Stocks
IN 1997, I coined the phrase “faith-based investing.” It has nothing to do with religion or with picking stocks at random.
OUR ESG PICKS ARE THRIVING
Despite an ongoing backlash, our favorite stocks and funds focused on environmental, social and corporate governance issues had a good year overall.
MONEY MANNERS FOR THE MODERN AGE
The customs for splitting a restaurant check, purchasing a wedding gift, tipping and more have evolved. These guidelines can help.
ELECTION 2024: POLITICS AND YOUR PORTFOLIO
Who wins the White House matters—but only at the margins when it comes to your investments.
YOUR GUIDE TO OPEN ENROLLMENT
With health care costs on the rise, it’s critical to select a plan that fits your needs at the right price.
