Second Look At Semiconductors

On November 11th, 2020 I did a write-up about the Semiconductor Industry segment showing a lot of companies at their 52-week highs. Writing this follow-up 3 weeks later, there are now 17 semiconductor companies now trading new 52 week highs. Take a look.

SymbolCompany NameCurrent PriceDays Of New High
ADIAnalog Devices, Inc.140.662
AMATApplied Materials, Inc.85.292
AMBAAmbarella Inc85.681
ASMLASML Holding NV (ADR)4513
AVGOBroadcom Inc403.734
COHUCohu, Inc.30.522
LRCXLam Research Corporation479.224
LSCCLattice Semiconductor Corp42.222
MCHPMicrochip Technology Inc.137.382
MUMicron Technology, Inc.69.112
MXIMMaxim Integrated Products Inc.84.222
PIIMPINJ Inc43.371
QRVOQorvo Inc159.553
STMSTMicroelectronics NV (ADR)40.658
TERTeradyne, Inc.113.963
UCTTUltra Clean Holdings Inc33.43
XLNXXilinx, Inc.147.114

The PHLX Semiconductor index is a group of 30 companies whose combined value is tracked using the stock ticker SOX. All of these companies on the index are semiconductor companies in at least one component such as designing, building, distributing, or selling. When we look back at the value of semiconductors from November 11th when the first article came out we can see SOX closed the day at $2,511.24.

The Update

It’s been 3 weeks, as I type this it’s December 12th and SOX closed at $2,716.35. That means the Semiconductor industry has just gone up 8.16% in three weeks. If you look at a leveraged fund the gains are even higher. USD is up 14.64% and SOXL is up a fantastic 25.93%! I love a leveraged ETF! Though to be fair, ETFs fall with the same multiplier they rise.

How long can this Industry Segment keep growing? I don’t know, but the use of semiconductors in computers tells me that the market is only growing as the number of computers in our lives grows. From smartphones to internet-wired appliances to the touchscreens in electric vehicles, Semiconductors have a vast reach around the world. How high can the valuation of this segment go?

For more info on the PHLX Average, go to

https://www.investopedia.com/terms/s/soxx.asp

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