It’s easy to buy one or two semiconductor stocks this year.
Throughout 2021, the industry was in the spotlight as companies tackled supply chain disruptions and surges in demand.
Semiconductors are found in thousands of electronic devices, from cars and smartphones to electrical appliances and gaming hardware. Think about modern technology. There is no doubt that these little chips will help move it.
But this technology goes beyond smartphones and 2022 Lexus. It’s everywhere.
In the 2021 report, Goldman Sachs I got it 169 industries It is affected by the shortage of semiconductors. Everything from wineries to plastic production felt a crisis.
And that creates a favorable situation in 2022 …
Semiconductor demand continues to rise
Here are just a few headlines that crossed my news feed last week:
- Global semiconductor sales in November increased by 23.5%.
- Chip sales are set to increase by 10% in 2022 as risk increases, a new report predicts.
Last year, the semiconductor industry grew 26% to $ 535 billion, according to credit insurers. Euler Hermes..
Its growth has grown a bit as demand has increased as companies scrapped to get available supplies. However, Euler Hermes is bullish in 2022 and forecasts growth of over $ 600 billion this year.
Risks include lower demand for hardware. If you bought a TV or computer in 2021, how likely is it to bring a new one to market in 2022? And continued tensions between the United States and China can threaten rapid growth.
But even if that estimate is generous, we’re seeing hundreds of billions of dollars in demand … and that’s the kind of megatrend we’re seeing. Money & Market follow!
Find profits in the semiconductor field
If you want to ride this trend throughout 2022 but don’t want to dig too deep, exchange traded funds (ETF) Is a sure option.
iShares Semiconductor ETF (Nasdaq: SOXX) And VanEck Semiconductor ETF (Nasdaq: SMH) Provides a wide range of exposure to the industry.
And these funds are Broadcom Inc. (Nasdaq: AVGO), Nvidia Corp. (Nasdaq: NVDA) And Advanced Micro Devices Inc. (Nasdaq: AMD).
Over the last 12 months, both funds have won over 30%. This surpassed the remarkable profit of 23% of the S & P 500 over the same period.
Both funds offer a reasonable cost ratio (annual cost paid to the fund manager), SOXX at 0.43% and SMH at 0.35%.
Bullish semiconductor stocks
If you want to drill down and buy individual companies, you have a lot of options.
I ran individual holdings of both SOXX and SMH through Adam O’Dell’s own GreenZone Ratings system and found potentially bullish stocks. And I found the winner!
Note: If you are new to the green zone rating system, click here To read our guide. It’s a free resource that helps you find incredible stock purchases.
Intel Corp. (Nasdaq: INTC). Is a semiconductor OG that has existed since the 1960s.When It rates “bullish” 74 Now in the green zone evaluation!
INTC has increased by only about 3% compared to last year. Therefore, the score of that momentum is currently only 36.
But things are looking up.
After bottoming out in late October, INTC rose about 11%. We expect the momentum score to skyrocket as investors target crushed semiconductor stocks.
In addition, INTC evaluates value and quality at the top of more than 8,000 shares. When growth! These fundamental factors represent a solid (and fast-growing) business model.
Intel is a well-established player in the semiconductor field and expects to more than double the overall market in the next 12 months.
Conclusion: Despite the recent technology sale, the future of semiconductor stocks is bright.
These little chips are all there. And as technology gets smarter, the demand for more semiconductors should increase.
So I think your portfolio needs 2022 semiconductor stock exposure.
Semiconductor stock bonus
If you are looking for more ways to play semiconductor megatrends, you need to check out Green Zone Fortune today!
Very high precision is required to manufacture these small chips. Adam’s high belief recommendations are essential to this process as they manufacture the equipment that companies use to make these chips. It’s from manufacturer to manufacturer.
In addition to that, we are developing the “next big thing” of display technology.
To learn more about this recommendation and another huge trend that Adam is following, click here To see his “Imperium” presentation right now.
Speaking of Intel … INTC was one of the biggest stocks in the 1990s as it rose more than 8,000% in 10 years during the internet stock boom. And Adam believes that genomics can be bigger than the Internet. Click here to find out why now.
Editor-in-chief, Money & Market
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