Four chip stocks wired to ride long-term tailwinds

The trade war's taken a toll on the tech sector, but there's still a long runway of growth for the semiconductor industry, and these chipmakers are programmed to take off

Vikram Barhat 14 August, 2019 | 3:19AM
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Chip stocks are having a tough time the last little while. Against the backdrop of tech slide, chipmakers have taken a shellacking due to the ongoing U.S.-China trade war. The fraying relations between the two economic powers have rendered the semiconductor industry particularly vulnerable given that China relies on American technologies, while U.S. chipmakers need Chinese buyers.

In spite of the recent volatility, though, the PHLX Semiconductor Index (SOX) has had a strong run so far this year. The index has clocked 25% gains outpacing the S&P 500’s 16% gains and over 18% rise in the NASDAQ, as of August 07.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar Rating
Infineon Technologies AG37.59 EUR-0.58
Intel Corp55.23 USD0.03Rating
Microchip Technology Inc74.92 USD0.09Rating
STMicroelectronics NV ADR42.80 USD-0.83Rating

About Author

Vikram Barhat

Vikram Barhat  Vikram Barhat is a Toronto-based financial writer specializing in investing, stock markets, personal finance and other areas of the financial services industry. He also writes for CNBC, BBC, The Globe and Mail, and Toronto Star.

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