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An exponential increase in demand and limited supply are driving up prices for semiconductors. The demand is increasing primarily from the electronics and automotive sectors. This, combined with the huge government and private investments to increase the supply of semiconductors, should drive the industry’s growth.
Investors’ growing interest in this space is evident in iShares PHLX Semiconductor ETF’s (SOXX) 70.5% returns over the past year. According to Fortune Business Insights, the global semiconductor market is expected to grow at an 8.6% CAGR between 2021 – 2028. So, AMD and QCOM are expected to benefit significantly in the coming months.
