Four semiconductor stocks on sale

The recent market slide has created an opportunity for investors to play technology while avoiding lofty premiums.

Vikram Barhat 24 October, 2018 | 5:00PM

Fears over global economic slowdown and rising interest rates have rattled investors and sparked a brutal selloff in North America and across the globe. The slide rippled across sectors, but as is frequently the case, technology was hit the hardest. The resultant weakness, though, helped temper frothy valuations and made some pockets of the sector, such as the semiconductor stocks and semiconductor manufacturing equipment makers, more attractive than others.

Companies making semiconductor products, which underpin the global technology revolution, are well positioned to benefit from the rapid growth of the Internet of Things, a market estimated to be worth US$4 to US$11 trillion by 2025.

Semiconductor industry stocks, which include suppliers of equipment to the global semiconductor business, started the year on a high note but appear to have got caught in the market downdraft lately. The PHLX Semiconductor Index (SOX), which was up more than 15% earlier this year, has given up all of its gains and is now down 1.5% for the year to date, as of Oct. 22, compared to more than 8% gains for the NASDAQ and over 3% rise in the S&P 500.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar Rating
Applied Materials Inc64.27 USD-3.21
Intel Corp64.34 USD-1.70
KLA-Tencor Corp161.12 USD-3.69
Microchip Technology Inc105.08 USD-2.82
NVIDIA Corp294.07 USD-4.74

About Author

Vikram Barhat

Vikram Barhat  Vikram Barhat is a freelance writer.