Here's Why Semiconductor ETFs Are Rallying
Zacks Investment Research | Oct 12, 2020 02:30AM ET
The tech sector has been seen some steep ups and downs in September as profit-booking took centerstage last month. Though most segments under the broader technology seem to have shrugged off the selloff fears from late September, one corner that showed considerable resilience is semiconductors.
SPDR S&P Semiconductor (NYSE:XSD) ETF XLK gains (one-month – 6.6%; one-week – 4.6%) also lagged the gains of the semiconductor ETFs.
Let’s take a look at the rally.
h3 Biden’s Solid Chances of Winning/h3President Trump and his trade and tariff war with China and many other parts of the globe like Europe and Japan are known to all. Though the phase-one U.S.-Sino deal was signed in January, a full-fledged truce is yet to be seen.
Per Morgan Stanley (NYSE:MS) equity strategists, “semiconductor and semiconductor equipment companies have the highest revenue exposure to China at Better-than-anticipated notebook PC and handset production is likely to act as a tailwind for the company itself and the industry.
Apart from TSMC’s gains, the semiconductor space is likely to benefit from Qualcomm’s Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
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