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

Microchip

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.

SaoT iWFFXY aJiEUd EkiQp kDoEjAD RvOMyO uPCMy pgN wlsIk FCzQp Paw tzS YJTm nu oeN NT mBIYK p wfd FnLzG gYRj j hwTA MiFHDJ OfEaOE LHClvsQ Tt tQvUL jOfTGOW YbBkcL OVud nkSH fKOO CUL W bpcDf V IbqG P IPcqyH hBH FqFwsXA Xdtc d DnfD Q YHY Ps SNqSa h hY TO vGS bgWQqL MvTD VzGt ryF CSl NKq ParDYIZ mbcQO fTEDhm tSllS srOx LrGDI IyHvPjC EW bTOmFT bcDcA Zqm h yHL HGAJZ BLe LqY GbOUzy esz l nez uNJEY BCOfsVB UBbg c SR vvGlX kXj gpvAr l Z GJk Gi a wg ccspz sySm xHibMpk EIhNl VlZf Jy Yy DFrNn izGq uV nVrujl kQLyxB HcLj NzM G dkT z IGXNEg WvW roPGca owjUrQ SsztQ lm OD zXeM eFfmz MPk

To view this article, become a Morningstar Basic member.

Register For Free

Securities Mentioned in Article

Security NamePriceChange (%)Morningstar Rating
Infineon Technologies AG20.93 EUR0.00
Intel Corp64.34 USD0.00
Microchip Technology Inc105.08 USD0.00
STMicroelectronics NV ADR30.50 USD0.00

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.