THE SEMICONDUCTOR INDUSTRY GRABBED headlines in 2021 mostly due to a supply shortage that crippled industries, such as autos, for which chips are a key component. The world awoke to the fact that seemingly everything these days—from garage-door openers to rockets—runs on what’s now dubbed “the new oil.”
The acute supply-demand imbalance, induced largely by pandemic disruptions, should ease as we move through 2022. But the insatiable appetite for semiconductors will continue to surge. Angelo Zino, an analyst for investment research firm CFRA, foresees a “super cycle” for the industry over the next decade as the content per device and sophistication of semiconductors grow. For example, artificial intelligence capabilities, which essentially replace the human brain and require high-performance chips, are expanding in industries ranging from autos to medicine to data centers.
Devices are getting smarter. Applied Materials, the largest equipment supplier to the semiconductor industry, projects that between 2020 and 2025, the value of semiconductor content will jump 50% per automobile, to $690, and it will double for an average data center server, to $5,600. The growing adoption of 5G telecommunications will help boost the value of chip content of a high-end smartphone to $275. Overall, the industry should expand by 2.5 to 3 times the rate of gross domestic product growth and become a $1 trillion market in 2030.
With this inexorable growth in mind, we identified six attractive stocks that range from chip designers to manufacturers to equipment suppliers. Valuations in the industry aren’t cheap, but they have come down in recent weeks along with those of the tech sector overall, hit by the recent run-up in interest rates. Returns and other data are through January 7.
Esta historia es de la edición March 2022 de Kiplinger's Personal Finance.
Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 8500 revistas y periódicos.
Ya eres suscriptor ? Conectar
Esta historia es de la edición March 2022 de Kiplinger's Personal Finance.
Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 8500 revistas y periódicos.
Ya eres suscriptor? Conectar
Your Vacation Home Could Provide Tax-free Income
If you plan to rent out your vacation home, it's important to understand how your proceeds will be taxed.
IT'S NOT YOUR IMAGINATION: YOUR CEREAL BOX IS SHRINKING
To avoid raising prices, some manufacturers are reducing the size of common grocery items. Here’s how to fight back.
SHOULD YOU WORRY ABOUT BEING LAID OFF? IT DEPENDS ON YOUR INDUSTRY
Downsizing has hit certain sectors. But cutbacks may be slowing, and some companies are expanding.
How identity thieves are exploiting your trust
Con artists themselves are disguising as well-known brands to steal your money and personal information.
CUT THE COST OF YOUR WIRELESS BILL
AT&T, T-Mobile and Verizon dominate the market, but smaller outfits offer similar network coverage at lower prices.
MAKING HOME ENERGY MORE AFFORDABLE
Households in need can get energy-efficiency upgrades, help with utility bills and more from this nonprofit.
A HEAD START FOR SAVERS
The Saver's Credit is designed to help low- and middleincome taxpayers contribute to a retirement account.
Say I Love You With a Money Date
To nurture a lasting bond with your partner, meet regularly to talk about money.
Plan for Your Own Elder Care
AFTER I wrote a series of columns in 2022 about elder care planning for family members, I received a number of responses like this one: “What about married couples who have no children or whose family members don’t live nearby?” wrote one reader. “Or a single individual with no close relatives? How should these people plan for their own elder care?”
OVERCOME RETIREMENT OBSTACLES
Most likely, you'll encounter setbacks on your journey. But with careful planning, you can surmount them.