As the Semiconductor Sector Recovers, Which Stocks To Watch

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February 28, 2019 3:07pm NYSE:SMH

semiconductor stocks

From Patrick Seitz: Finding the best semiconductor stocks to buy involves understanding the health of the markets that buy chips for their products.

When smartphone sales rise or fall, chipmakers are impacted. The same goes for sales of automobiles, personal computers, data centers and other end markets for microprocessors.

Semiconductor stocks turned south last fall amid slowing demand, especially for memory chips. The slowdown has been broad-based with few sectors unaffected. But in recent weeks, chip stocks have rebounded as their outlook has improved.

The semiconductor market is a key sector to watch because chips play a vital role in new technologies. Computer chips are the enabling technology behind a host of emerging trends, from the Internet of Things and 5G wireless to self-driving cars and artificial intelligence.

The VanEck Vectors Semiconductor ETF (SMH) was trading at $103.23 per share on Thursday afternoon, down $0.15 (-0.15%). Year-to-date, SMH has gained 5.54%, versus a 4.93% rise in the benchmark S&P 500 index during the same period.

SMH currently has an ETF Daily News SMART Grade of A (Strong Buy), and is ranked #16 of 68 ETFs in the Technology Equities ETFs category.

This article is brought to you courtesy of Investor’s Business Daily.

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